Consumer Insights

Study Shows Financial Assistance Needed Post-Graduation

For years, large cities like New York, Boston and Los Angeles have attracted people from all age ranges to come work and live. Shows like “Friends” and “Sex and the City” make these places out to be welcoming and fun, and maybe the most appealing aspect is the appearance of being affordable.

Studies following people in their twenties have recently confirmed the opposite to be true. According to this research, graduates are experiencing difficulties paying their rent for the first few years out of college. In fact, nearly 40 percent of this group are receiving some form of financial assistance from their parents to make ends meet.

Although parents are helping out in many parts of the country, the areas that are receiving the most assistance tend to be urban. With rising rents and a rapid change in the types of skills needed to be successful, many young people are struggling to break out on their own.

It turns out that the the type of field a young person pursues factors into how much assistance is needed by parents. Those in art-related fields are receiving about $3,600 a year, while blue-collar fields on average get $1,400 annually.

The New York Times quoted Patrick Wightman, a University of Arizona professor who helped analyze the data: “Someone who wants to go into graphic design or marketing requires a fair amount of time to get up to the point where you’re independent. Someone contemplating that kind of career isn’t going to take that first step unless they know they’re going to have that support to take an unpaid internship. If you don’t have other sources of support, that’s not even an option.”

Living expenses today and in the future may make young people heading into the workforce rethink both where they live and possibly an alternative career path.

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