Many people today find themselves delaying traditional life goals due to financial constraints. It’s important to acknowledge this issue because it highlights the need for better financial planning, support systems, and policies that can help individuals and families achieve their dreams without undue financial stress.
1. Moving Out of Parents’ Home
High housing costs and economic instability have led many young adults to remain in their parental homes longer. In 2023, approximately 31.8% of U.S. adults aged 18 to 34 lived with their parents, reflecting a significant increase over the past two decades. A 2023 survey found that 70% of young adults aged 18 to 29 living with their parents felt they would be financially unstable if they moved out.
2. Buying a Home
Homeownership has become increasingly challenging for young adults. The median age of first-time homebuyers has reached 38, the highest on record. Several factors contribute to this trend. Rising home prices have significantly outpaced wage growth, making it difficult for young adults to save for a down payment. Limited housing supply exacerbates the issue, leading to increased competition for available properties. Wealthier buyers, often older individuals with accumulated equity, can outbid first-time buyers, further sidelining them.
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3. Having Children
Many young adults are postponing parenthood until they feel financially secure, often waiting until their 30s or later. This delay is influenced by economic challenges, career aspirations, and changing societal norms regarding family planning. A 2024 study by the Pew Research Center found that today’s young adults are getting married much later than their parents’ generation. This delay in marriage often leads to postponement of parenthood. This delay partly explains the lengthening of the transition to adulthood that has occurred in recent years.
4. Achieving Financial Independence
Economic challenges, including high living costs and job market instability, have led many young adults to remain dependent on family longer than previous generations. This financial dependence is more pronounced among younger adults; only 16% of those aged 18 to 24 report complete financial independence. Even among those in their early 30s, just 67% are fully independent. Factors contributing to this trend include rising student debt, with 43% of 25- to 29-year-olds carrying such debt today, up from 28% in 1993.
5. Starting a Full-Time Job
The transition from education to stable employment has become increasingly prolonged for young adults. In 2021, the youth unemployment rate in the United States was 9.7%, a significant decline from the peak of 14.9% in 2020, yet still indicative of persistent challenges in the job market. This delay in securing stable employment is influenced by several factors. The evolving nature of the job market demands higher educational qualifications and specialized skills, prolonging the period young adults spend in education and training.
6. Getting Married Early
The median age for first marriages in the United States has been steadily increasing over the past several decades. In 2023, men are marrying at a median age of 30.2 years, while women are marrying at 28.4 years. This trend reflects a societal shift towards prioritizing personal and professional development before entering into marriage. Several factors contribute to this delay. Many individuals are choosing to invest time in higher education and career establishment, seeking financial stability before committing to marriage.
7. Completing Higher Education
Pursuing higher education often results in substantial student loan debt. In the 2020-2021 academic year, 54% of bachelor’s degree recipients graduated with student loans, averaging $29,100 in debt. This financial burden can significantly impact graduates’ post-college life, influencing decisions such as career choices, homeownership, and family planning. The weight of debt may lead individuals to prioritize higher-paying jobs over passion-driven careers, potentially affecting job satisfaction and long-term happiness.
8. Establishing a Career
Entering the job market has become increasingly competitive for young adults, leading to challenges in securing stable employment in their chosen fields. This often results in underemployment and delayed career progression. A study by the International Labour Office highlights that young people are more likely to experience unemployment or precarious employment, which can delay their attempts to become independent and develop work-related competencies. Underemployment or unemployment during early career stages can damage skills and delay advancement.
9. Traveling or Exploring the World
Financial constraints and work commitments significantly limit young adults’ opportunities for extensive travel. This financial instability makes it challenging to allocate resources for travel. Additionally, research from the University of California highlights that young adults often face greater hurdles in obtaining driver’s licenses and transitioning into the job market, further restricting their mobility and travel opportunities. The rising cost of living exacerbates these challenges. With limited disposable income, young adults prioritize essential expenses over leisure activities like travel.
10. Retirement Planning
Immediate financial pressures often compel young adults to delay saving for retirement, prioritizing current expenses over long-term financial security. This trend has significant implications for their future well-being. A 2023 study by the TIAA Institute found that only one-third of young adults save regularly, while another third save when possible. The remaining third are not saving, focusing instead on immediate expenses or debt repayment. They cite financial setbacks and over-reliance on Social Security as key issues.
11. Building a Social Network or Community
Balancing work demands and financial stress often limits opportunities for social engagement among young adults. High levels of anxiety and depression can lead to social withdrawal, making it difficult to build and maintain social connections. America is experiencing higher rates of anxiety, depression, and loneliness than any other age group. Approximately half of the young adults surveyed feel financially stressed, struggle with achievement pressures, and perceive their lives lack meaning.
12. Pursuing Hobbies or Personal Interests
Economic constraints often compel individuals to prioritize work over leisure activities, leading to postponed personal development through hobbies and impacting overall well-being. A study published in the European Sociological Review examined whether household economic constraints drive the income gradient in extracurricular activity participation. Using panel data methods on a nationally representative sample of Swedish adolescents, the study found that changes in household income are not generally associated with changes in participation.
13. Starting a Business
High costs deter many young adults from pursuing entrepreneurial ventures. Student debt and financial instability are significant barriers, leading to delays in achieving this milestone. A study by the Kauffman Foundation found that nearly half of young entrepreneurs reported that student loan payments affected their ability to start a business. Despite the decline in young people starting companies, there is still a need for innovative solutions and support to encourage entrepreneurship among this demographic.
14. Engaging in Civic Activities
Financial obligations and time constraints often hinder young adults from engaging in civic activities or volunteerism. Managing personal finances can be daunting, especially for those new to it. Many young adults grapple with debt from education loans or the costs of living independently, leading to significant financial stress. A study analyzing data from the 2018 National Financial Capability Study found that student loan debt was positively related to all indicators of financial stress and hardship among young adults.
15. Establishing Long-Term Relationships
Financial instability significantly affects relationship dynamics, often leading couples to delay commitments like marriage or cohabitation until they achieve economic security. High living costs and job market instability contribute to this trend, causing many young adults to remain dependent on their families longer than previous generations. Additionally, research published in the Journal of Family and Economic Issues indicates that financial strain leads to increased individual emotional distress and couple disagreements, which in turn elevate perceptions of marital instability.
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