If you haven’t moved out of your family home yet, you’re surely thinking about when to decide on this serious step into adulthood. The later we make the decision, the more we expose our family members to the additional costs associated with our livelihood. This happens not only when children and their families live, but when we live alone and are unable to control our budget. What are the results of studies that illustrate the indebtedness of people aged 50+? Why are Poles in debt for their children? How can we plan expenses on our own? Let’s see!
Poles move out later from their parents
When talking to young people aged 18-25 about moving out of their family home, one can get the impression that nowadays young people are even afraid of adulthood and do not want to reach this stage in life, delaying it as long as possible. Only a dozen or so years ago, life stabilization was achieved at the age of 20-25, while we are currently moving from the phase of youth to adulthood on average 10 years later. Research has shown that 44% of people under the age of 35 still live with their parents.
Reasons for the reluctance to independence of our children
Our parents and grandparents dreamed of leaving their family home when they came of age. The period of rebellion, the vision of living on your own and managing your own life – all these factors motivated former 18-year-olds to act. Today, the disappearance of intergenerational rebellion can be seen. It is more convenient not to question the parents’ words – it is more convenient and safer after all. Currently, young people are quite reluctant to think about life on their own. With the subsequent setting up of a family, the period of living with the family also extended. The same applies to planning your career. Young people don’t want to take risks because they can’t cope with failure. As a result, older Poles are indebted to their children and grandchildren, which is also confirmed by the research cited below.
Many people do not want to move out of home because they value a comfortable life under the wings of their loved ones. Always prepared homemade dinner, ironed shirts and monthly pocket money are factors that discourage young Poles from moving out. Another group are people living with their parents, but they run a household together, take care of it and contribute to costs. It is also true that today it is very difficult for young people to enter adult independent life because of the cost of living. Renting an apartment can be so high that a person starting his professional career cannot afford a separate flat. Cooking for one person, and for example 4 is also much more expensive. Fixed fees for utilities are also a large part of monthly bills, which in a situation of housing in a larger group are broken down.
Below is a list of free payday loans that will help us overcome financial problems. However, let us remember that when deciding on such a commitment, we must be sure that we will be able to pay it back.
TEEN – a modern young man
The concept of TEEN is not yet widely known, but as it turns out, it applies to a very large group of young people. The name comes from the English language: not in employment, education or training . This means that it is a group of people who literally do nothing: they do not study, work or train in any direction. Eurostat conducted a study that showed that in Europe across 2015 TEENs aged 20-24 were as many as 5 million! If divided into individual nationalities, Italians first (31.1%), followed by Greeks (26.1%), followed by Croatia (24.2%). The percentage of Poles belonging to this group was 17.6%, which is not a very satisfactory result.
The young laze and grandma pays – Poles are indebted to children
Young people included in the TEEN phenomenon do nothing, but it does not mean that their lives cost nothing. Trips with friends, food and small pleasures – you have to find money for it all. Who in this situation comes with financial help? People over 50 years old, i.e. our parents and grandparents. At the request of KRD BIG, Williard Moose conducted a survey which showed that over 50% of Poles over fifty support financially younger relatives, i.e. children and grandchildren. And we’re not talking about borrowing small amounts from time to time – it’s also about total livelihood. The study also showed that the average amount that is borrowed is PLN 207. 17% of respondents over 50 years of age loan their children and grandchildren PLN 400, and 13% even larger amounts. Very worrying are the results, which showed that 61% of people aged 60-70 support their children who are 40 years old! Undoubtedly, the above data confirm that Poles are in debt for their descendants.
The above data are alarming and clearly show how much the society does not want to become independent. Lack of assertiveness of older people towards their children and grandchildren means that very often Poles are indebted to children. As many as 11% of respondents admit to taking a loan for a younger family member. What is the effect of this? This very often creates a spiral of debt. Elderly people who do not have a significant income or who earn their living from low pensions are not able to meet their children’s financial needs, which results in further borrowing. Currently, the average debt of a person over 50 is 12.3 thous. PLN, and the total debt of seniors is almost PLN 3 billion. Older Poles are indebted to the young, but how to avoid problems and deal with the repayment of obligations?
It is better to live with grandmother or parents
We have already mentioned the reasons that make a young man prefer to live with his family. We would like to support our words with research. People over 50 not only help financially their children and grandchildren, but also provide them with a roof over their heads. Research has shown that over 30% of respondents admit to living with their children and 8% living with their grandchildren. Similar results were obtained by studies of people aged 25-34: in Poland, 43% of people of this age live with their parents (data are from 4 years ago) and this result significantly exceeds the EU average (27.5%).
How to handle yourself?
Despite the unfavorable research results, we hope that from year to year a larger percentage of young people will opt for not only financial, but also housing independence. The awareness that we have our own budget, earn money and are able to live independently can be an extraordinary experience for us, which will teach us perseverance in pursuing a goal and good organization. If you are just thinking about moving out of your family home, you should prepare for it beforehand, e.g. by paying rent for parents. First of all, we will relieve parents’ expenses a little and learn regularity and get used to monthly fees.
Living in our own apartment, we must carefully plan expenses, because otherwise in the middle of the month we may be surprised by an empty bank account. At the beginning of each month, we should create a list that will initially specify how much and on what to spend. We should be aware that sometimes unexpected expenses, such as car repair or renovation in the kitchen, may surprise us. Let’s be responsible and don’t ask for a loan from our parents, but let’s think about it earlier and set aside a specific amount every month. Put aside money will be useful in an emergency.
Why is credit history so important?
It is also very important to build your credit history. Let’s buy necessary, small items in installments and pay them back on time. Zero interest rates appear on the popular auction site and many other sites. This is an excellent opportunity to build your credit standing and credit history. A positive debt repayment history will make it much easier to get a mortgage. The same applies to installment loans.
If you suddenly need money, you should think about a positive credit history in advance to get a loan quickly and easily, among others, at companies Our grocery shopping is also important. Usually mother did it for us, but now we have to make the right shopping choices. Before visiting the store, let’s create a list and buy only the things we need. We don’t want to throw away expired and uneaten products – that’s the way we lose money! Imagine that instead of expiring yogurt you throw away 3 zlotys taken out of your wallet.
Flat with parents is not the worst alternative, but only if it is a stop in the direction of adulthood, we save the money saved in this way on the own contribution necessary when buying an apartment. However, if we stay in a family home for convenience – it’s a bad solution. Poles are indebted to their children – a fact confirmed by research. The young generation, however, should reflect on their own attitude and try to change it. Rational spending of money earned and saving – we should remember this when moving out from parents.