Memo to Generation-Y
Generation Y-ers expecting parents to foot their bills could be in for a rude awakening since the economic crisis hit, according to a poll.
A survey for Australia’s St George Bank found almost two-thirds of Generation Y-ers – people born from the mid 1980s to early 1990s – are expecting their parents to help them out with their rent, their wedding and when buying a home.
However, the poll found many parents were no longer in a position to fund their children, with 70% of baby boomers, or people in their fifties and sixties, suffering financially as a result of the global financial crisis.
“Clearly, most parents want to help their grown-up children but circumstances have changed for many and it’s understandable that parents are now having to focus on their own needs and financial health,” said bank spokesman Andrew Moore.
“As a result when it comes to paying for things like weddings, first home deposits, overseas travel and childcare, many Gen Ys must now stand on their own two feet … the fall in parental financial support will no doubt be a significant blow to Gen Y who have grown accustomed to receiving parental help.”
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Mac Says:
I didn’t depend on my folks for anything. Time will tell how my kids fare. I expect my son will be independent like I was. My daughter, however…
Posted on June 14th, 2009 at 12:15 am
Cynapse Says:
The only people I know who are my age and have a house in Toronto either got it through family, had family make a down payment, or were able to live at home while working to save for a down payment.
Today’s economy is different Mac. That whole “I pulled myself up by my bootstrap” mythology is void. If you can’t depend on your parents, you end up with a ridiculously bad mortage or living in an apartment well into your 30′s.
Posted on June 14th, 2009 at 12:20 am
Mac Says:
Yet some people still argue for more and expanded social programs, all paid for through taxation. Something has to give.
Posted on June 14th, 2009 at 12:25 am
Cynapse Says:
That is less of an issue than the fact that houses are simply much more relative to gross income. Lowering taxes isn’t going to help my generation that much – housing just needs to be more affordable. For Toronto, that means getting rid of that damn green belt and improving the commuter trains so people don’t feel the need to jam themselves into Toronto proper (I’d certainly leave if the commute wasn’t an hour).
Posted on June 14th, 2009 at 12:29 am
Mac Says:
Having come from the over-heated market in Vancouver, I hear you… but I’m not sure finding ways to enable greater urban sprawl in Toronto is necessarily a great solution. How about focusing on sustainability instead of unfettered growth; in the housing market, in the population and in the economy. Just a thought.
Posted on June 14th, 2009 at 12:35 am
Cynapse Says:
True enough, though I only see the population growing, not necessarily the economy. Mayor McMuffin is doing a fantastic job of driving out the middle class via heavy taxation, new regulations (garbage, recycling) and failing to keep up the infrastructure. Pretty soon this town is going to full of people with old money and welfare cases. Not everything is his fault, mind you – people in this city are in love getting dangerous mortgages just to build their McMansions that sit so close to each other they may as well be townhouses.
Posted on June 14th, 2009 at 12:48 am