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Half of young Americans describe themselves as financially independent, although, over 60% are concerned they will lose their job due to the COVID-19 pandemic, according to a survey released by TD Ameritrade in May.
About 75% of respondents are "anxious" about how the coronavirus will impact their finances, reports the survey, while six in 10 say the pandemic has "derailed their journey to financial independence." Some respondents said they have postponed starting a family, or have moved back home with their parents due to financial stress created by the pandemic.
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The survey was conducted online by the Harris Poll, among young American respondents (ages 15-29), from February 20 to March 4 (2,002 respondents), and from April 10-16 (691 respondents). Although, wide-spread social distancing and economic closures, due to the pandemic, began mid-March.
The survey defined "financial independence" as being able to meet your financial obligations without financial help from others, including family, credit cards, or personal loans. However, respondents under 18 years of age, are generally still financially dependent.
"1 in 4 [respondents] still rely on their parents to cover their entire rent check," reports the Survey, while more than half still rely on at least partial help to pay for expenses like cellphone bills, medical expenses, and insurance.
Many young millennials, even pre-pandemic, felt "crippled" by rising living costs and student loan debt, says the Survey.
82% of respondents say they are having a "tougher time achieving financial independence, because the cost of living has gone up and salary levels remain the same," while 37% say student debt is a serious roadblock to financial independence, according to the Survey.
Interestingly, the survey reported that parental guardrails were shown to be a reliable benchmark of financial independence. For example, 50% of financially independent young Americans say their parents told them they were on their own, or established clear boundaries about when they would be financially cut off, compared to only 31% of those non-financially independent. Likewise, respondents who worked during college were more likely to be financially independent.
63% of respondents say keeping a strict budget is the most import facet of achieving financial independence. 41% look to "increasing income with side hustles," which has become more popular during the pandemic.
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