78% of Americans feel they’re doing financially OK or comfortably, while 22% are just getting by or struggling. 57% believe they are financially better off than their parents were at the same age. Among those with a mortgage, 62% feel better off, compared to 46% of renters.
The T. Rowe Price 2021 Parents, Kids, And Money Survey found that 54% of parents frequently discuss financial goals with their children, which can have a lasting impact on their financial awareness.
Comparing Financial Success Many adults compare their financial situation to their parents at the same age. The Survey of Household Economics and Decision Making (SHED) reveals that 57% of Americans feel they are doing better financially than their parents. However, perceptions vary: women are more likely than men to feel worse off.
Millennials, in particular, often feel better off financially. 53% say they are better off than their parents were at their age, possibly due to lower birth rates and fewer child-related expenses. Marriage also plays a role, with 60% of married millennials feeling financially better off, compared to 46% of single millennials.
Homeownership and Financial Success Homeownership is often seen as a key indicator of financial success. 62% of mortgage holders feel better off than their parents, while only 46% of renters feel the same. According to the National Association of REALTORS®, 74% of Americans see homeownership as the highest gauge of prosperity, followed by retirement (66%) and a successful career (60%).
However, financial stability also involves having an emergency fund. 32% of those who feel better off than their parents, and 59% who feel worse off, lack three months of expenses in savings. An emergency fund is crucial for overall financial well-being and achieving major goals like homeownership.
Conclusion Financial success compared to your parents is subjective and depends on personal perceptions and economic conditions. Progressing toward your financial goals, whether saving for retirement or buying a home, is an achievement to be proud of. If homeownership is your goal, research the financial requirements and costs involved to better prepare for a mortgage.
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