For the first time on record, living with parents is now the most common arrangement for people ages 18 to 34, an analysis of census data by the Pew Research Center has found.
To that point, about 33 percent of all millennials live with their parents, slightly more than the proportion who live with a spouse or partner. It's the first time that living at home has outpaced living with a spouse for this age group since such record-keeping began in 1880.
When it comes to leaving home, millennials apparently need some extra help these days, says Rianka Dorsainvil, a millennial certified financial advisor who helps her millennial clients navigate through their financial life and focus on investing for the future. The owner of Your Greatest Contribution has some solid advice for those young folks looking to leave the nest.
First, she recommends that millennials form good bill-paying habits by paying their way within the family household. She urges these young folks to create a realistic budget and spending plan, listing what they will need to spend on rent, groceries, transportation, etc.
It's also key to pay down any debt, such as student loans or credit cards (this will also boost their credit score).
Dorsainvil also encourages young people to establish an emergency fund. An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. Being prepared with an emergency fund gives you confidence that you can tackle any of life's unexpected events without adding money worries to your list, she explains.
Creating financial freedom is the ability to maintain a comfortable lifestyle while saving for the future and staying out of debt. Achieving it requires restraint and careful planning, she explains.
The reward is stability and peace of mind. If young people adhere to these steps, Dorsainvil said, they will create a strong financial foundation and be able to move out of their parents' home and enjoy their financial freedom.