Family Finance

Why It’s Easier Than Ever for Kids to Remain Financially Dependent

Kids don’t want to remain dependent on their parents’ finances forever, however it is easier now than ever because of the cost of living. These costs are making it hard for kids to move out on their own and be able to support themselves. This is due in part to the economic conditions, health insurance costs, and debt.

Economic Conditions

Economic conditions can have a considerable effect on kids because they are the most financially unstable. They are newer to the job market and have lower wages than those who have been in the labor market for years which is what makes them susceptible to hardship. Many kids may find themselves needing to take a job they don’t want so they can earn some wages. However, these wages are likely lower and make it hard for them to move out on their own. Some may even take unpaid jobs to gain experience in their field to attempt to gain higher wages.

Health Insurance

Health insurance is necessary even for healthy kids in case something was to happen. However, health insurance can be expensive. Thankfully, employers may offer competitive health insurance packages. However, not all employers offer this. It can be especially hard if kids are not employed full-time as benefits are often only offered for full-time employees. There are options to alleviate the burden of health insurance costs. The Affordable Care Act allows people to stay on their parent’s plan until they’re 26.


A major challenge that keeps kids financially dependent is debt. They may have received an education, however if they had to take out student loans this can lead to significant debt. This means their earned wages go to pay these loans, rather than other living expenses. Other debts can occur during school, such as credit card debt. It can be difficult to make enough money while going to school for other needs, so credit cards can be a tool that kids use to help with living expenses. This can further increase debt, increasing the time it takes to be financially independent.

Many kids don’t want to remain financially dependent. Because they are dependent, they may put off other life events such as marriage and having kids because they are not able to be financially independent. Achieving independence can take some time, hard work, and even some luck.

Check out this article on why divorce can be hard on your finances!