The majority of American adults are living in households with one or more people, according to a new study published by LendingClub Corp. (NYSE: LC) in partnership with PYMNTS.
In a poll of 4,602 adults conducted last month, 86% of respondents said they were living with one or more people, and while one-third of respondents who acknowledged they were existing on a paycheck-to-paycheck basis said they were in households of four or more people. Consumers not living paycheck-to-paycheck are most likely to reside in two-person households, at 41%.
The survey also found 49% of millennials and 55% of bridge millennials were in households of four or more people, making them the age groups most likely to reside in the largest households. Among the younger Gen Z demographic, 58%, were living with family members, with 50% citing economic reasons for their current residential status. Members of Gen Z living with three or more people — often familial settings — spent 22% of their income on housing, compared to 30% of those living alone or with a partner.
But for Americans living with friends or housemates instead of family, 77% said they live paycheck-to-paycheck. However, 66% of Americans with children under the age of 18 are 12% more likely-to-live paycheck-to-paycheck, compared to the 59% of childless adults existing in that financial state.
“As household size increases, the ratio of income earners to household members typically falls, creating a higher likelihood of financial distress,” said Alia Dudum, LendingClub’s money expert. “The relationship between household income and household composition explains why many families tend to struggle financially and why millennials and bridge millennials, many of whom are in their peak child-rearing years, tend to remain financially vulnerable.”
“With today’s inflationary pressures, sharing household finances has become not only common but crucial,” continued Dudum. “The increasing complexity of modern lifestyles and the rising cost of living have necessitated a shift in the way consumers approach household finances. One person solely bearing the burden of managing all financial matters has become a minority practice. Instead, couples, families, and even roommates increasingly jointly navigate their economic realities, and it’s a trend that is here to stay.”
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So let’s look at Gen Z and milliennals. These generations were 1) the entitlement generations 2) they were mostly students (over 6 years of advanced education being brain washed) thinking they could move out of mommy and daddys 4 BR home into one of their own without working for it. They never thought that mommy and daddy started out in a one bedroom apartment and worked up.
That is absolutely correct-but with the baby boomer and Gen x being the ones responsible
The majority of these 2 generations were extremely spoiled and entitled to everything the parent had without any accountability and responsibility
Jackie, My husband and I started out in a one bedroom apartment and worked up. We never were paycheck to paycheck, My husband was in the military so we moved and lived in 25 apartment sand houses in 25 years until he retired after 20 years in the Army, then he worked on Civil Service. I built three houses from the ground up in three different states, all three bedrooms with fireplaces and super modern kitchens. The final home, I drew the blueprints and oversaw the six month construction.