Since the economic collapse, many millennials decided to move back home because they couldn’t find work or jobs within their field of study. This prompted a lot of mockery and ire from the general public because in general people in their 20s are supposed to move out on their own and become independent contributors to society. However, the economy changed all of that.
One prominent investor thinks millennials shouldn’t return to the nest. Instead, they should just get a better job and be active in their efforts to move out of mom and dad’s basement.
Kevin O’Leary, a billion-dollar investor and panelist on popular show "Shark Tank," recently sat down with the Business News Network (BNN) and explained that the key to success for millennials is to simply find a better job that helps you move out of the family home’s basement.
Many millennials may scoff at this idea because it’s too simplistic. However, the O’Leary Financial Group Chairman suggested that millennials, and today’s college students, should look into the trades because this industry is bringing home the bacon and generating big bucks.
“Plumbers can make a lot of money,” said O’Leary. “What matters is a career where you can make cash.”
The problem for millennials, says O’Leary, is that they are entering an area of work where jobs are scarce, competition is fierce and the pay is quite low. Many usually refer to this as the general arts, teaching or social work.
"There’s just too many of them seeking the same jobs," added O’Leary. "Go to where there’s more demand for your work, which is around the trades.”
What should parents of these millennials do? O’Leary’s advice is for mom and dad to sell the family home, move into a one-bedroom condominium and never look back. In this type of living arrangement, millennials can never move back home.
The Life of Millennials
According to the United States Census Bureau, approximately one-fifth of millennials aged 25 to 34 have moved back home with their parents. The Pew Research Center places that figure at about one-third.
Many opine that it’s because of the labor market and the high unemployment rate, but some put forward the idea that there’s something more to it.
Jordan Weissman, an economics correspondent at Slate, writes that it may have more to do with the modifications of young adulthood, such as delaying marriage and the substantial rise of student debt. Weissman alternatively states:
"To put it another way, when it comes to twenty- and thirtysomethings living with Mom and Dad, it’s possible we’re looking at something close to a new normal."
A large number of pundits and researchers have previously posited that this could be the new reality of young adults everywhere. Instead of the norm of yesteryear - graduating school, finding a new job, moving out and getting married and having kids - the modern society could consist of young adults only achieving this in their 30s.
Indeed, it may be hard for millennials to succeed on their own with $50,000 of student debt and low-paying jobs. So parents of these 20- and 30-somethings may have to postpone plans of moving into that suggested one-bedroom condo and get ready for your graduate to move back home.
O’Leary may be one of the most hated men in the U.S. and Canada, but his investment strategies have paid off. His advice of getting into trades isn’t a novel concept, but it is wise. It may be too late for a bulk of millennials to get into a different career, but for Generation Z, it could create a plethora of new opportunities.
What do you think of O’Leary’s ideas? Your thoughts and comments below please...