Parents and kids disagree on the right age to become financially independent, report finds (2024)

FAQs

At what age should kids become financially independent? ›

That said, the typical age of financial independence should be between 20-23 years old, according to a Bankrate survey.

Young adulthood, spanning approximately ages 18 to 26,¹ is a transitional period during the life course when young people are traditionally expected to become financially independent, to establish romantic relationships and become parents, and to assume responsible roles as productive and engaged members of the ...

It found that the perfect age for making financial decisions hovers between 53 and 54.

United States. In general, minors are under the control of their parents or legal guardians until they attain the age of majority or are otherwise legally emancipated, at which point they legally become adults. In most states, the age of majority is upon reaching 18 years of age.

Even though your children may require less physical support as they grow into adulthood, they still benefit from emotional support at any age. Be there for your children to answer questions, listen to concerns, encourage interests, praise accomplishments, and provide advice when prompted.

As children become more experienced and comfortable with tasks, they can assume responsibility for doing them regularly. Research shows encouraging independence fosters a child's self-confidence, resilience, problem-solving ability, and mental health.

Greater financial security

Being financially independent means you are in a better position to ensure you don't find yourself at the mercy of these factors. When you're financially independent, you can choose roles that suit your approach to risk rather than being dependent on a salary.

More often than not, financial dependence is cast in a negative light. Usually, it's because the situation prevents the financially dependent person from leaving. Without their partner, they have no source of income for life's basic needs and no savings or support system to fall back on.

Meanwhile, 44 percent of young adults aged 25 to 29 told Pew they are completely financially independent of their parents. Most adults in their early 30s — 67 percent — told the think tank they are totally financially independent of their parents, as well.

Prior research establishes that children's involvement in decisions (either deciding with parents or deciding on their own) increases over ages nine to 13 (Yee and Flanagan 1985), while decision autonomy (deciding without parental input) increases over ages 12–17 (Dornbusch et al.

Can 12 year olds make decisions? ›

Most states consider the wishes of a child as young as 12 or 14. Still, it can vary depending on how the judge perceives the child's maturity. Some judges will ask the child what they want and consider their wishes.

In addition, neuropsychological studies have begun to show that brain capacity does not mature until approximately 25 years of age. Our society, for complex social and political reasons, permits independent decision making for most matters, including health care, at age 18 years.

Isabel Barrow, the director of financial planning at Edelman Financial Engines, advises clients to agree on a deal: Parents will offer some financial support to their children, if their kids are also making decisions that support their own financial future in other ways, such as contributing 10% of their salary to a ...

All typically developing toddlers push for their independence. Each child has a unique timetable for this burst of “negativism”, but many parents will notice an increase in this difficult behavior around 18 months and again around 30 months.

You're not financially independent until your parents are left out of your budget. For many people, graduation day symbolizes the start of financial independence from one's parents. They no longer provide a significant income stream for you, so you're left on your own to find work and start paying your own bills.

A new Pew Research Center analysis of Census Bureau data finds that, in 2018, 24% of young adults were financially independent by age 22 or younger, compared with 32% in 1980. Looking more broadly at young adults ages 18 to 29, the share who are financially independent has been largely stable in recent decades.

A majority of young adults say they remain financially dependent on their parents to some extent, such as receiving help paying for everything from rent to their mobile phone bills. Only about 45% of 18- to 34-year-olds described themselves as completely financially independent from their parents, the study found.

Achieving independence is an essential part of the journey to adulthood. Pre-teens and teenagers need love, support and respect to become independent. It also helps to set clear rules, give pre-teens and teenagers responsibility, and build their decision-making skills.

By this time, children can dress themselves, catch a ball more easily using only their hands, and tie their shoes. Having independence from family becomes more important now. Events such as starting school bring children this age into regular contact with the larger world. Friendships become more and more important.