The average New Jerseyan feels least ‘financially free’ at the age of 38, finds study.
- This is on par with the national average of 38 years old.
- Most New Jerseyans think they would need a minimum of $5 million to be financially independent.
From milestones such as repaying college loans, to buying a house, or supporting a family, we steadily become laden with more and more financial burdens as we go through life, meaning most of us will unlikely feel true financial freedom until retirement.
Even though the number of kids per household has dropped over the years (now currently at 1.94), it still costs a lot of money to bring them up. And the cost of mortgages has risen recently, particularly compared to income – in September 2022, rates rose to 6.7%, the highest in 15 years.
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Feeling The Least Financial Freedom
But when is that actual moment, when we feel the least financial freedom in our lives? What age are we when it really kicks in? Real time coupon and deals discovery site, CouponBirds, surveyed 3,500 respondents and found that the average New Jerseyan feels the least financial freedom at 38 (compared to a national average of 38).
Factors contributing to this age of financial dependence could include when people purchase their first home. The average American first-time homebuyer is thirty-six years old, which imvolves putting down a sizeable deposit and starting to pay regular mortgage costs.
And many Americans are starting families a little later; recent figures suggest that fertility rates increased by more than 67% for women between the ages of 35 and 39 - and those fancy Bugaboo strollers don’t buy themselves....
When broken down by state, Montanans said they would feel the least financial freedom earliest, at the rather young age of 27. But those in Delaware and Vermont say they feel the least financially free at 61.
CouponBirds also found that a staggering 84% of people say their life goal is to become financially independent - above anything else.
Most New Jerseyans think they would need a minimum of $5 million to be truly financially independent - that would certainly be enough to pay outright for a much bigger house, never have to worry about bills again, and perhaps throw in a couple of fast cars. That money would of course go further somewhere that wasn’t LA, San Francisco or New York, for example.
On average, 65% said they do not think they will be able to retire before they reach 65, which is fairly standard, but 22% don’t expect to be able to do so until they reach 75, perhaps due to the daily, monthly or annual costs they will still be liable for.
When asked what they would do if they were hypothetically given $1 million, 40% said they would invest it in a financial instrument such as stocks or bonds - then hopefully the amount would grow - and 28% would buy property, which is also a sensible investment.
26% would put it in savings for their kid’s college funds, which given how costly this can be, is a very good idea, and a saintly 6% would give part of it to charity.
Interactive Map Showing Financial Dependence Ages Across America
Created by Coupon Birds
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