Financial independence is even more elusive than it was two years ago for 20-somethings coming of age amid global economic uncertainty. More than half (58 percent) of 20-29 year-olds with some college rate themselves behind where they expected to be in terms of financial success, a 26 percent increase since 2011. Hispanics in this group are significantly more likely to say they are financially better off than their parents were at the same age. That may be because Hispanics are more likely to live with their parents (45 percent) than non-Hispanics (39 percent), benefitting from strong family support.
"Young Hispanics are more optimistic about their financial success than non-Hispanics because they see themselves making greater progress than their parents," said Mekael Teshome, economist at The PNC Financial Services Group. "In fact, we found that 20-something's have generally very similar expectations and objectives- regardless of their ethnicity - except when cultural values come into play."
These findings are part of the PNC Financial Independence Survey, which sought insights into the financial mindset of 20-somethings within Generation Y, which is projected to outnumber all population segments by 2017.
Hispanic millennials are more likely to say they are financially better off than their parents were at the same age (57 percent) compared to whites (52 percent) and African Americans (50 percent). They also carry less debt than non-Hispanics ($18,000 vs. $27,800), with 31 percent of Hispanics having no debt. In addition, 57 percent of Hispanic millennials know their credit score or generally how good it is.
Financial independence is even more elusive than it was two years ago for 20-somethings coming of age amid global economic uncertainty. More than half (58 percent) of 20-29 year-olds with some college rate themselves behind where they expected to be in terms of financial success, a 26 percent increase since 2011. However, for many of these children of baby-boomers, optimism remains high; 60 percent of those who do not identify as "totally independent" are determined to be independent soon.
Twenty-somethings' mounting debt is taking its toll, as 60 percent of the generation who grew up amid economic growth and graduated into a hard-hitting recession say they feel stressed about their outstanding debt, according to a survey by PNC. The unique study compares responses among Generation Y and reveals that both low- and high-interest-rate debt increases with age, while the portion of income saved decreases in the late 20s.
Financial reality is especially harsh for 20-somethings nationwide as a mere 23 percent rate themselves as totally independent, according to a firstever survey by PNC. Worse yet, only 18 percent of 20-29 year-olds, whose adult lives began amid the 2008 Great Recession, are confident they will have enough money to live comfortably when they are ready to retire.