Moving out, landing a job and paying your own bills used to be seen as signs that you made it to adulthood. But a new study suggests that financial independence is arriving much later for many Massachusetts residents.
About 72% of Gen Zers — those born between 1997 and 2012 — and 53% of millennials — born between 1981 and 1996 — still consider themselves financially dependent on their parents, according to Northwestern Mutual’s 2026 Planning & Progress Study.
Why financial independence takes longer now
More than half of respondents said achieving financial independence is harder today than it was for previous generations, according to the survey.
Housing costs may be the single biggest factor delaying financial independence, according to certified financial planner Bobbi Rebell, author of How to Be a Financial Grownup.
“Everyone has to live somewhere,” Rebell tells Money. “There is no way to avoid it other than to live with someone else who is paying the cost, which is often parents.”
Meanwhile, Americans collectively carry roughly $1.7 trillion in student loan debt, a burden that can not only delay homeownership but also make it harder to save, invest and build financial stability.
While not everyone takes on student loans, Rebell says debt can make it harder for borrowers to achieve other financial goals during their early earning years. (The average borrower spends 16 to 19 years repaying their student loans.)
The result is a timeline that looks very different from previous generations. Traditional milestones such as moving out, buying a home and becoming fully self-sufficient are increasingly happening later in life — if at all.
“Adulting used to be more linear and, in many ways, [easier] to make sense of for young people,” Rebell says.
More parents are also helping adult children cover major expenses or contributing money toward a starter home, she adds, effectively extending financial support well into adulthood. A recent TD Bank survey found that 67% of first-time homebuyers either received or plan to receive money from a family member.
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money.com