With the rising cost of living, it’s no surprise that more and more young people are having to live with their parents in order to be able to save up enough money to eventually move out. House prices are skyrocketing, meaning it’s now more difficult than ever to buy, and renting isn’t cheap either – often people opt for houseshares to further save on costs. But what does all of this mean for you? And what can you do to raise extra funds?
- Nearly one million more young adults are living with their parents compared to 20 years ago (2.4 million in 1997 to 3.4 million in 2017).
- In London, the number of young people living with parents grew by 41% between 1996-98 and 2014-15.
- The number of young people living alone in the UK has fallen from 1.8 million in 2002 to 1.3 million in 2017.
Why spend an absolute fortune on rent when you can continue living at home for free, or for a lot less? You may decide to stay at home because the cost of housing is just so high. Many believe that paying rent is just ‘money down the drain’ as you pay off someone else’s mortgage without getting anything of your own. And, with costs getting higher and higher, especially in cities, the more attractive living at home becomes. Renting just a one-bed flat in London eats up nearly half of the average salary, and the average cost of a one bedroom flat in Bristol is a huge £767 per month. And that’s before bills.
It’s not just the cost of rent putting people off – house prices are also on the rise. The annual increase in the year to May 2019 was the fastest recorded since January 2017 and comes after a 5% rise in April. The average property will now set you back £237,837.
Millennials are moving significantly less often than earlier generations of young adults. Among 25- to 35-year-olds, who were living at home in 2016, 91% reported that they resided at the same address one-year earlier, much higher than the previous generation. Among Gen Xers living at home in 2000, 86% reported living at that address one year earlier, an indication that moving away from home is increasingly less common.
Cost of living
The general cost of living is getting more and more expensive. Costs of weekly food shops, travel and entertainment are all rising, making saving money very difficult. From council tax to TV licence, water bills to gas bills, general house bills are also on the rise, again deterring young people from finding their own place. Plus, what was once considered by many as ‘luxuries’ are now becoming necessities. Could you live without your Netflix or Spotify subscriptions in order to save money? The ‘fear of missing out’ or ‘FOMO’ haunts many! Plus, travelling is now more popular than ever. With youth travel representing more than 23% of the one billion tourists travelling internationally each year, it’s clear that saving for experiences such as this is now quite important for this age group.
What you can do to make extra money
There are lots of ways to earn a bit of extra money, including selling old clothes on eBay or DePop, getting a weekend or part-time job, or even dog walking! To save money, decide on what is a luxury and what is a necessity. Could you go without catching up on a Netflix series this month? Could you make your coffee at home instead of buying it at your local coffee shop? Little things like this can really start to add up, so make sure you’re only spending where you have to.
Making more money doesn’t always have to be boring and a chore – taking part in market research is also a great opportunity to get some extra cash. You can work this around your day-to-day life and you get to communicate with big brands, telling them what you really think of their products or services. You’ll meet like-minded people and, if you’d rather, you could take part in the comfort of your own home (or your Mum & Dads!). So, to get started, join our panel and start receiving invitations to take part in studies that are relevant to you.