Americans who came of age around the time of the 2008
recession are still feeling the pain, and so are their parents.
Only 23% of people 20 to 29 are completely self-supporting, according to a survey by
PNC Financial Services Group Inc. They aren't very optimistic about the future, either, and the oldest among them are the least optimistic of all. Only 14% of 28- and 29-year-olds said they feel optimistic about their personal financial future, compared with 20% of 20- and 21-year-olds. Only 18% overall feel confident they will have enough money to live comfortably when they retire.
Young adults may have gotten a tough break by coming of age during a massive economic downturn, but because they are young, time is still on their side. “Don't panic,” said Todd Barnhart, senior vice president of PNC Bank. His advice: manage spending, start saving and “chip away at any debt,” he said.
Generation Y has good reason to be somewhat pessimistic, said R.J. Weiss, director of Marketing at Weiss Insurance Agencies Inc., and founder of Gen Y Wealth LLC, a financial education website for 20-somethings. He became a certified financial planner last year at 26.
“In their short time as adults, Gen Y has had to deal with a lot,” including two bear markets, a
recession and unemployment that topped out at about 10%, he said. He has seen a more pessimistic view in this age group overall. “All that influences how Gen Y looks at money,” he said.
Not only has the poor economy taken a toll on financial optimism, it apparently has left many 20-somethings feeling that they have fallen behind, especially those approaching 30. The percentage of 20-somethings who said they are behind their expectations in terms of financial success rises from 38% of 20- to 21-year-olds to over half, 52% of those who are 28 or 29. Only about one-fourth of 20-somethings overall said they have exceeded their expectations. Another fourth said they are about where they expected to be.
Of the 2,000 20-somethings who took the online survey in July, only 28% said they have a full-time job, compared with 57% who said they work part time. To make up the difference, 21% rely on their parents, 15% have a spouse to help and 11% receive a stipend from their school.
