Money

Millennials can’t stop borrowing cash from parents – especially from mum

Jul 03, 2018

Those born between 1981 and 1996 are most likely to ask for a loan. Source: Shutterstock

New research has revealed that when it comes to lending money from friends and family, Millennials are more likely to ask for financial help than Baby Boomers or Gen X’ers.

The study, conducted by CreditLoan.com, looked at the spending habits of men and women across the three generations, and asked participants how much debt they would allow themselves to accrue before turning to their nearest and dearest for a loan.

Those born between 1981 and 1996 were found, on average, to ask for help paying off their debts after racking up around US$13,000 (AU$17,718) in owed monies and experts say this is because it is “more difficult” for Millennials to support themselves financially, than for previous generations.

The breaking point for generation X (1965 to 1980) was around $15,500. Whereas Baby Boomers were the generation most reluctant to ask for help and waited, on average, until they had accumulated a debt of around $19,000.

“In my opinion, Millennials are most likely to ask to borrow money because they are in a position financially where fully supporting themselves is more difficult than it was for their parents or even their older siblings,” says Daniel Wesley, founder of CreditLoan.com.

“The Millennial generation is crippled by student loan debt, where they then enter a workforce that is still tied to salaries which cannot keep up with the level of inflation occurring across the nation.”

However, while the Baby Boomer generation on a whole was the least likely to ask for a handout, women from this generation, classed as those born between 1946 and 1964, were found to be far more likely to ask for help than their male counterparts.

The findings showed that women would ask for assistance from loved ones when their debt hit $10,750. While male Boomers wouldn’t seek help until their debt was more than double that amount, at $27,362.

Read more: ‘I’m not embarrassed’: Pocket-money Millennial responds to backlash.

Interestingly, the research also revealed that Millennials are 12 per cent more likely to ask their mum for financial help over their dad. They’re also 59 per cent more likely to accept money for basic necessities and more than twice as likely to borrow money for a vacation, compared to Baby Boomers.

Wesley added: “This is also a generation that has proven to value ‘experiences’ above all else, from moving to big cities, gap-years, internships, Millennials are more willing to pursue different paths to achieve what they deem is ‘successful’.

“Millennials crave opportunities and involvements that will increase their ‘personal’ value but does not always equate to a monetary gain.”

The research also revealed that women of all ages tend to have a lower threshold for how much debt they’d have to accrue before asking for help. It was also revealed that while women are more likely to seek financial support from family or a friend, men are more likely to pursue other avenues to pay off their debts.

“From the tamer options—like selling furniture or a car—to the more extreme—like stealing—men are more likely to eliminate their debts through these choices,” Wesley says.