The Bank of Mom & Dad Father and Mother can you spare a grand?” Brother can you spare a dime? is considered the anthem of the Great Depression.
Father and Mother can you spare a grand is going on right now.
Nearly one in five Mainers since the beginning of the pandemic nearly a year ago have received Bank of Mom and Dad funding. Sure, they are expected to pay the loan back when things get straightened out, but most of the money is interest free.
What are the kids buying with that money? Well unlike the stimulus check money which lots of 20 somethings spent on bigger flat screen TVs, this money they’re borrowing is for essentials, like rent and a car, and groceries and childcare.
The Coronavirus Pandemic has impacted a lot of people financially. And those who are just starting out in their career fields are no exception.
According to a survey that was recently completed by USA Will Guru, 1 in 4 South Dakotans between the ages of 20-29 have received money from their parents since the beginning of the pandemic.
Some of the key takeaways from the survey found that:
78% of these South Dakotas say that they are on a no-interest loan from their parents.
1 in 5 parents said that they are NOT confident they ll be paid back this loan. The USAWillGuru.com survey of 4,500 20-29 year olds provides a snapshot of young people’s living circumstances since the biggest economic shock in modern times. As Gen Z moves into adulthood and millennials advance into middle age, an overwhelming trend has emerged, revealing that
Um.
guilty.
This has been a hard time for everyone, with unemployment rates high and bank account statements very,
very low. While some in Colorado have reached out to the actual bank for loans, there are many who recognize that the bank of mom and dad has no interest rate.and depending on who your folks are, not as much pressure to pay it back.
According to USA Will Guru, after polling 21 to 39-year-olds in the state, 25% of young Coloradans revealed that they have reached out to their parents for a loan since the start of the pandemic in 2020.
78% say there is no interest on the loans (with 5% saying repayment terms had not even been discussed). And for those who have moved back in with parents, and equally high figure (72%) say they are living rent-free.