Today’s twenty-somethings: Feet on the ground, or blowing in the wind?

By Carol Church, Writer, Family Album
Reviewed by Martie Gillen, PhD, Department of Family, Youth, and Community Sciences, University of Florida

A young relative of mine finished college this summer, and we’re all interested and excited to see what he’ll do next. He’s the “first to launch” of the grandkids, nieces, and nephews on that side of the family.

Do you remember what it was like to venture out into the world of work after your years in school? While it was exhilarating, I also found it nerve-wracking. I happened to graduate during the economic downturn of the mid-’90s, which was a bit hard on me and my classmates.

College-Educated 20-Somethings: Most Doing “Okay”

Things are a little tough for today’s new graduates, too, though the situation has certainly improved since the so-called Great Recession. A group of researchers interested in the financial and work success of today’s young college grads began following a group of about 1000 University of Arizona students back in 2007. In a recent study, they report on how these young people are doing now, at ages 23 to 26.

Overall, researchers classified these students into one of three groups. A small number—only 12%—started out quite financially responsible and self-sufficient and remain so. Meanwhile, about a quarter still haven’t really gotten the hang of financial and occupational responsibility. But the largest group—about 60%—are doing okay, but not great.

Only about half of all the graduates hold full-time jobs, while 20% are working part-time or are self-employed in some capacity. About another 20% are in grad school (some in this group also hold part-time jobs). Six percent are unemployed—less than the national average. And a few said they’re neither working nor looking for work.

Many Not Financially Independent, But Still Optimistic

Concerningly, over 50% still aren’t fully financially independent, instead relying on relatives, spouses, or loans to stay afloat. This is more common for those not fully employed, but half of full-time workers also say they need assistance. This is true even though about 60% of this sample report not having any outstanding student loans.

How do these young people feel about their situation? Despite their lack of financial independence, most rated themselves fairly highly when asked whether they felt they’d fully reached adulthood. Ninety-five percent are confident that they will be financially self-sufficient in the future. However, recent graduates with debt are uniformly less satisfied with their lives than those without it.

Parents Can Help

Were any traits linked to more success? Young people whose parents had higher expectations of them and who’d had more financial education were more likely to be working and to have their financial affairs in order. Those whose parents provided less financial role modeling and who felt less control over their finances were faring worse.

It may not be an easy time to be a new graduate. However, parents can help their sons and daughters along by modeling and talking about money management and expecting them to handle their money and careers wisely. Make sure your children understand basic financial principles, and encourage them to enroll in financial education classes. Remember, too, that while they may follow a different path than what you expected, there’s still plenty of time for them to find their way.

(Photo credit: 359/365 Which way to go? by Stuart Pilbrow. CC BY 2.0. Cropped.)

References:

Serido, J., & Shim, S. (2014). Life after college: Drivers for young adult success. Retrieved from http://aplus.arizona.edu/wave-3-report.pdf

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Posted: August 29, 2014


Category: Relationships & Family, Work & Life
Tags: Family Resource Management, Parenting, Personal And Family Finances


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