It’s a surprising yet revealing fact: over half of Millennials and Gen Z adults over 21 still rely on financial support from parents or relatives. While this assistance can provide crucial help during tough times or early career stages, it also highlights a broader issue—many young adults face a significant gap in financial literacy. Counting on others for money isn’t sustainable in the long run. To truly thrive independently, young people must take charge of their finances and build a secure foundation for the future.

The Reality of Financial Dependence

Growing up in an era of economic uncertainty—from student debt to fluctuating job markets—many young adults find it challenging to become fully financially independent. Support from family can soften the blow, whether it’s help with rent, bills, or even daily expenses. But this safety net often masks a lack of essential money management skills.

The reliance on relatives delays a critical transition: learning how to manage income, budget effectively, and invest wisely. Without these skills, financial independence can remain elusive well into adulthood, limiting personal freedom and long-term wealth building.

Why Financial Literacy Matters Now More Than Ever

Financial literacy isn’t just about knowing how to balance a checkbook or avoid debt. It’s understanding how money works in a broader sense—how to grow it, protect it, and make it work for you. The sooner Millennials and Gen Z acquire these skills, the better prepared they will be for major life milestones like buying a home, starting a family, or planning for retirement.

Without financial literacy, young adults may struggle to:

• Create a realistic budget that matches income with necessary expenses
• Understand the difference between good and bad debt
• Start saving for emergencies and future goals
• Invest money in ways that build wealth over time
• Avoid common financial pitfalls, such as high-interest loans or credit card traps

In essence, financial literacy is the compass that guides sound money decisions, leading to greater security and peace of mind.

The Salary: Your Primary Income Source—and How to Make It Work Harder

For most young adults, a salary is the primary—or only—source of income. And while earning a paycheck is essential, the real financial goal is to generate enough income to cover expenses without being tied to a full-time grind forever. Achieving this requires smart planning and proactive habits.

If you’re just starting out in your career and earning your own money, here’s how to begin laying the groundwork:

1. Save a Portion of Your Income Regularly
Even modest savings add up over time. Setting aside a percentage of each paycheck before spending on discretionary items creates a habit of saving. This “pay yourself first” approach ensures your financial future is prioritized.

2. Build an Emergency Fund
Life can be unpredictable. Having three to six months’ worth of expenses in a readily accessible savings account provides a safety net against job loss, medical emergencies, or unexpected costs.

3. Invest for Growth
Saving money in a basic savings account is a good start, but to build long-term wealth, investing is key. Whether through retirement accounts like a 401(k) or IRA, or other investment vehicles such as mutual funds or ETFs, putting money into assets that grow over time helps your income work harder.

Avoiding the Pitfalls of Financial Dependence

Dependence on family support might seem comfortable now, but it can foster habits that prevent growth. Relying on others can reduce the urgency to budget, save, or plan for the future. Breaking free means taking deliberate steps to manage your own finances:

• Track your expenses: Know where your money goes and identify areas to cut back.
• Set financial goals: Define what independence looks like for you—whether that’s paying your own bills, buying a car, or traveling.
• Educate yourself: Use online resources, workshops, or financial advisors to build your money skills.
• Create a budget: Plan your income and expenses to avoid overspending.
• Start small: Don’t wait to make perfect financial decisions; even small steps forward matter.

The Bigger Picture: Financial Independence as Empowerment

Financial literacy and independence aren’t just about dollars and cents—they’re about empowerment. When Millennials and Gen Z learn to manage money effectively, they gain confidence to make life choices on their own terms. They’re able to pursue passions, weather setbacks, and plan for retirement without fear.

The journey to financial independence starts today, with intention and education. You can build habits that serve you now and pay dividends throughout your life.

Final Thoughts

Relying on family support can provide temporary relief, but it’s no substitute for solid financial literacy and planning. If you’re a Millennial or Gen Z adult beginning your money journey, recognize the value of mastering your finances early. Start by saving and investing a portion of your income, educate yourself about budgeting, and set clear goals for your future.

Remember, financial independence isn’t just a dream—it’s an achievable reality with the right knowledge and habits. Take control now, and secure the foundation for a prosperous tomorrow.