Homes are only getting more and more expensive as each year passes — 13.1% per year on average, in fact. Unfortunately, many young adults struggle to save enough money to break into the housing market with such a steep price increase on homes each year, despite wanting to own a home rather than rent one.
Saving money may not seem like a big deal to people who have experienced what it’s like to go without, but for today’s generation, what with all the new iPhones, Galaxies, and gadgets they buy each year, or the new cars they get, it can be tough for them to save while still staying afloat in our technology-obsessed society.
This becomes especially clear when you look at some statistics; studies show that 45 percent of millennials don’t believe they will be able to purchase a home within in the next 5 years, and only 25 percent think they can. Even worse, 63 percent of them want to buy a home, but only half of that number has actually begun to save.
These are scary numbers, but it doesn’t have to be this way.
For those parents out there reading this, I suggest a gradual saving plan, perhaps something akin to this: http://4hatsandfrugal.com/2014/01/new-52-week-saving-plans.html. The plans shown in the article are gradual, and the money will barely even be missed. The results can be surprising, and within 5 years if you stick to some of these plans, your kid could save up to $5,000 or more without even trying!
It’s the least you can do for your kid, especially with the rise of inflation and housing costs. With these saving plans, you can help make sure your child is secure, and has a good deal of cushion income to start out with when he leaves the nest.