Moving out of home

Whilst there is a lot to admire about Generation Y and their focus to community and less materialism, they have been shown to be far more likely to move into home with their parents as an adult than any previous generation. They have been called the “trophy generation” because of the idea that “everyone gets a trophy” which they grew up with. Meanwhile their Baby Boomer parents have been dubbed the “helicopter parents”; for their practice of hovering over their children and protecting them from the world.

Gen Y commonly refers to those born between 1982 and 2000, or currently aged between 14 and 32. We know from Statistics NZ that the median age for women giving birth is 30 years old. The median age for marriage is 30 (women) and 32 (men), and the average age of first home buyers is 34. Generation Y, therefore, will account for a large proportion of new requirement for advice and service in the financial services arena as over 50% of savings, insurance and fee based advice needs are triggered by a life stage event – most commonly a birth, a marriage or buying a house, and Gen Y will increasingly account for these events.

So what happens to them when they move out of home? Well that’s perhaps best answered as to why they move back. The reality of the experience when first leaving the nest being somewhat different to the imagined freedom and flexibility perceived when at home. Somewhat of a generalisation of course as many tertiary qualified Gen Y’s have adapted to the move out of home of necessity – and many overseas students don’t wish to return home.

There are a number of life lessons to be learned however, which come from moving out of home, and depending on the extent to which they were prioritised when at home, there can be some seriously negative outcomes. From cultural and community behavioural changes to financial responsibility and relationship management. It’s a testing time for young people and their parents. So much can and does go wrong due to naivety and/or bravado. Consider parents of Syria bound young women and young men. Gen Y grew up with the internet. They have spent most, if  not all of their lives online, and this has shaped how they process information and how they communicate. While a Baby Boomers first instinct when faced with a question might be to ask someone nearby, a Gen Y’s first instinct will be to “Google it”. They are less likely to place importance on protecting things or their ability to buy things, and more on their ability to “follow their dreams”. They are used to being always connected and thus fall prey to those who use the internet for purposes of self indulgence (at best) or manipulation of their mind or soul (at worst).

These young adults have access to anything they want to know, and its available to them 24 hours a day from anywhere around the world. What they don’t possess is the wisdom necessary to differentiate between that which is fundamentally beneficial, and that which is fundamentally flawed or evil.

Generations prior to this also made mistakes but our means of correction usually came through wise counsel – from an older community with whom we mixed and learned in the company of, at work, at church or sporting club.

Is it  any wonder therefore, that caring parents are maintaining the role of care giver to young adults transitioning from dependence to independence – the difference being the need for Mum and Dad to have “flat mates” with children whose behaviour’s have changed from when Mum and Dad  were teenagers. Not easy for Mums and Dads to put up with sexual, financial and communicating behaviours being somewhat different to ones own upbringing. I don’t envy the role.

But something I would promote is the need for young people to improve their financial knowledge and to take responsibility for their financial future. The best and worst habits are formed when one is young and what I know from experience is that it is extremely hard to amend bad habits. It takes more than one year of penance to change 20 years of bad habits, and financially speaking this might be irrecoverable.