Why Are More Young Americans Living with Their Parents?

More Young Americans Are Living with Their Parents

A recent study conducted by the Pew Research Institute reported that more young Americans are living with their parents than ever before. While there are a myriad of reason why children move home, the Covid-19 pandemic and rising unemployment rates have been important contributing factors. With no clear end in sight and our financially stability in question, many young adults are looking to save money any way possible.

The Lost Generation

Let me begin by stating that I am a Millennial, born between 1981 and 1996. Let me then preface this first statement by debunking the stereotypes associated with my generation. Many call us lazy and self-righteous, soft and coddled children. We are not ungrateful or demanding. On the contrary, many of us are just trying to survive.

Some have dubbed us “the lost generation.” We grew up in the age before cell phones, witnessed the birth of the internet, and lived through a terrorist attack on home soil all before we graduated high school. Then, we were forced to take expensive loans in order to get a college education only to graduate in the midst of the mortgage crisis. We are now facing a second economic downturn just as we are reaching our prime earning years.

The promises we had been fed about working hard and getting a good education have fallen short. However, living through such adversity has taught us to adapt and be resilient. The majority of us are simply getting by. Like most Americans, we live paycheck to paycheck, and pray not to get sick or lose our jobs right now.

How Covid-19 Has Affected Employment

Although we are better educated than previous generations, we are the first generation to be worse off than our parents. Most young adults have little savings and fewer investments. Few of us can afford our own homes because we have outstanding debts to pay off first. The only thing that keeps this precarious boat afloat is a steady income. Unfortunately, recent closures and quarantine measures have left thousands of people out of work.

During the Covid-19 pandemic, American unemployment rates have skyrocketed. Millennials have been hit especially hard since many hold jobs in the service industry. The reported job losses in the wake of the economic downturn are the highest ever since the Great Depression. These conditions have forced many young adults to move back in with their parents. According to the Pew Research Center, 52% of Americans ages 18-30 live with one or both of their parents. While unemployment is not the only reason for children moving home, it is a significant factor. Furthermore, no one is certain how long conditions will continue or an economic recovery will take.

Financial Stability of Young Americans

Another intangible mark this has left on our generation is an attitude of pessimism and lack of trust in financial institutions. Paying monthly bills has become a challenge with reduced hours and widespread layoffs. The first stimulus check issued by the government offered some temporary relief, but when rent comes due many tenants will be unable to pay. It’s no wonder why many young Americans are living with their parents. Cutting out a monthly rent payment offers a huge financial relief.

The uncertainty of just how long conditions will persist only exacerbates these negative feelings. Conservative predictions estimate that it will take the better part of a decade for the economy to fully recover. This further complicates any plans to pay off debt, purchase homes, invest and retire. I can only speak for myself, but I think it’s safe to say that most young adults do not want to live with their parents. Unfortunately, with little savings and job opportunities it is becoming more of a necessity until we can better understand the full and lasting economic impacts of the coronavirus.

Read More

3 Reasons Why Weddings Are So Expensive

Beach Wedding Ceremony during Daytime
Why are Weddings so Expensive?

Summer is in full swing. While weddings occur all throughout the year, summer seems to be a popular time for two people to tie the knot. Many of us attend a wedding with the assumption that we are celebrating friends or family. But do we really know the costs behind it all? Weddings have been getting more and more expensive each year. Today, the average American wedding costs approximately $33,900. You may be asking yourself “How is this possible?” I can tell you 3 reasons why weddings are so expensive.

Continue reading

How to use Payday Loans Responsibly

Payday loans can be an absolute lifesaver when used correctly. A well-timed loan can get you out of a bad spot financially and give you a little boost while you’re waiting for the next payday. 

However, using payday loans irresponsibly can cause you a world of trouble and result in both your bank account and your credit score dropping exponentially. It is not a little loan that you take out on a whim; it needs to be tactical, and ultimately, should be a last resort option. So, when exactly is it appropriate to take out a payday loan? Continue reading

Finance Lessons from Professional Athletes

professional athletes finance

Many athletes have come and gone. Many have made unthinkable amounts of money and many have lost unspeakable amounts of money. A lot of professional athletes, lacking time and the right advisors end up losing the fortunes they make. Oftentimes, they lose their fortunes and end up in significant debt. Their experiences serve as great lessons for the rest of us who would like to make and keep a sizeable nest egg. Professional athletes finance lessons provide a treasure trove of information. Continue reading

What Age Should You Start Thinking About A Real Estate Investment?

Real estate is one of those topics that can scare off a lot of people for several reasons. First off, it’s expensive. Second, it can be risky. You’re essentially putting thousands of dollars towards something that can be very valuable, but that’s not always guaranteed. If you’re wondering what is the best age to start considering investing in real estate, we can’t give you an exact number. However, if investing is something you want to do in the foreseeable future, we can help you decide when the right time is. 

 

You aren’t in a lot of debt

First comes first. Before investing in something as expensive and as risky as real estate, you’ll want to assess how much debt you’re in. Whether you have student loans, an expensive car payment, credit card debt, or even a mortgage,  you’ll want to pay those off as much as possible before investing in real estate. Many real estate investment strategies will involve taking out mortgages, which will put you in more debt. 

Naturally, younger adults in the country, mostly those who went to college, will have more debt than older, more established people. However, if you’re younger and in debt, you can make smart financial choices now so that down the road, you can also invest in real estate. 

 

You are financially stable and have good credit

Before you go ahead and take financial risks like investing in real estate, take a step back and evaluate where you are financially. Do you have a good credit score? Are you financially sound? When you invest, you’re putting money on the line. Before you make any big financial moves such as this, make sure you have savings, a low debt-to-income ratio, and a steady enough income where that if something were to fall through, you would be okay. 

If you’re at an age right now where you’re not as well-off financially as you’d like to be, start making choices that will benefit your financial wellness down the road. Create budgets, save up, and pay off debt. In just a few years, you’ll feel more comfortable investing in real estate. 

 

You have the time to put in the work

Real estate investing isn’t a “buy a house and you’re done” sort of deal. You’re going to have to put time and energy into the investment after you purchase the home or property. If you decide to fix the house up and resell it, you’re obviously going to need to either hire a crew to fix the house up for you or do it on your own. Not planning on going the “fixer-upper” route? Renting the house out, which is another alternative, also takes work. As a landlord, you’ll have a list of responsibilities. 

The time and energy that you spend in investing doesn’t go to waste, though. Taking the time to take care of the property you purchased is only going to work out better for you in the long run. Don’t have the extra time right now? Reassess down the road when you do.

Like we mentioned before, we don’t have an exact number when it comes to the best age to invest in real estate. However, we do know that it’s based on your financial wellness, how much debt you have, and how much time you have to put towards your investment. We hope you found this post helpful and will continue to stop back to Budget and Invest for similar posts. 

Working with a Real Estate Agent

Don’t go it alone when buying a home. It helps to have a real estate agent when buying a property in a city like Toronto.

You’ve probably heard the term “house hunting,” but have you heard of “real estate agent hunting”? It’s a term I use to describe the process of finding the right agent. Home buying can be competitive. Choosing the right agent can mean the difference between buying your dream home and being left on the sidelines.

What makes a good agent? A good agent gives you the knowledge and tools you need to make informed decisions.  A good real estate agent will have extensive social contacts in their local markets.  Good agents also understand which types of properties are a good fit for their clients – especially those who are first time home buyers.

Finding the right agent can take time. I was with three agents before finding the right one. My first agent was friendly and helpful, but when it came time to make an offer, she didn’t provide me with comparable properties (even after I asked for them), so I had no idea how much to offer and ended up losing out on a nice home. My second agent had the tenacity of a pit bull, but then she just seemed to lose interest. The third time was the charm. My third agent was the perfect fit. He was hands-on, which was great, since I was a first-time homebuyer. He showed me a ton of properties. It took me only a couple of months to find and buy my home.

With so many agents out there, choosing one can feel overwhelming. You might choose the first agent you meet. And you may find the right agent this way, but there’s no guarantee. Similar to house hunting, you won’t know for sure unless you see what else is out there.

Finding an Agent

Looking for an agent? Here are good places to start:

  • Word of mouth: Ask for recommendations from family, friends and colleagues who have recently bought a home.
  • Lawn signs: Look for an agent with lots of lawn signs in the neighbourhood you’d like to buy in. Visit their website to read testimonials.
  • Open houses: Open houses aren’t just for nosy neighbours. They’re also a great way to meet agents. The agent should already be familiar with your desired neighbourhood.
  • Brokerages: If there’s a real estate brokerage nearby, stop in and mention you’re looking for an agent. The brokerage can match you with an agent suited for your home-buying needs.
  • Multiple Listing Service: Visit the MLS website and search for agents selling homes in your area.

Post brought to you by Sean Cooper.

Two Modern Ways to Establish a Retirement Fund

 

Most people these days are working hard not just because of their families, but to save up for something. For example, if you want a car or some other luxury item, they tend to work crazy house just to get it. Some people are so lucky that they can do that while hardly working. For the common American though, they need to do a whole lot more. According to this page, this is one of the reasons why most people these days have multiple jobs just to support themselves. Life might be tough, but we are here to survive all of that. Continue reading

How to Transition to Green Technology and Save Money

Green technology is nothing new, but many homeowners are kept in the dark about the value it brings in terms of cutting energy costs. Many more are reluctant to make the transition toward clean energy because of the upfront costs. Still, there’s no denying that green technology can save homeowners a fortune in the long-term, starting with the tax credits they can earn by adding sustainable energy features to their home.

People have the impression that it’s easier and cheaper to construct a home already outfitted with green features then to add these features to a pre-existing or newly purchased property. In actuality, making the switch to green technology on an existing property can be less costly as long as the right approaches are applied.

Here are a few things to keep in mind as you switch to clean energy.

  1. Know how much energy you consume

The first thing you will have to do is to get an idea of your current energy consumption. This will help you set the proper benchmarks or targets you should be aiming for to gradually decrease your energy spending. You may want to request that the Environmental Protection Agency provide you with a report of how much power you consume based on your home’s location.

  1. Pick the right strategy

Once you have already mapped out your energy consumption rate and set a workable monthly goal, you now have to choose which green technology will best fit your current needs. There’s always the option of installing a solar system, but there are various other choices you can explore, such as wind turbines and hydro-power facilities. The best way to look at your options is to ask an accredited green energy contractor to help you make the right decision.

  1. Find a good service provider in your area

When it comes to switching to green power, it’s always best to look for a contractor that already has a proven track record in helping homes lower their energy costs through eco-friendly alternatives. For this, opt for service providers in your community who can hook you up with a green energy program you can work with. There are a lot of electricity providers in Texas or any other state that specialize in green technology at the best possible rates, so start looking for one.

  1. Get suggestions from your community

If you are living in a neighborhood that’s committed to green living, make sure to ask for suggestions on the types of products you might want to use. You might also need to know if the community itself has specific policies when it comes to green technology, so don’t be hesitant to ask around. That way, you can make the transition less complicated for yourself and, more importantly, avoid possible ordinance violations and legal risks.

  1. Adopt a green lifestyle

Often, transitioning to green technology is a matter of choice. Certain habits can influence the amount of energy you consume, so be sure to adopt only those that can help you attain a green lifestyle. Keeping your home well ventilated and using energy-efficient appliances and programmable thermostats can make as much of an impact as installing solar panels – at a lower cost, of course.

As you can see, switching to green technology for your home isn’t so hard. You just have to have the right mindset.