Title:
THE IMPLICATIONS OF EARLY INDEPENDENCE ON FUTURE FINANCIAL WELL-BEING AMONG UK YOUNG PEOPLE: A LONGITUDINAL ANALYSIS WITH PSM-DID

Authors:
Yide Ling and Dongjing Chen, China

Abstract:
Leaving biological parents represents a significant turning point in young adults’ early independence, and the timing of this independence tends to influence their future outcomes. This research explores the implications of leaving biological parents on young adults’ financial situation in their later life. The analysis used data from Wave 1-12 of Understanding Society. More importantly, this paper employed PSM and DID methods to determine the casual effects of leaving age on the future financial situations. The result suggests that the age when leaving biological parents significantly influences future economic well-being. Specifically, leaving before 16 years old would negatively affect future economic well-being compared to people leaving after 16, while leaving before 26 years old would cause positive impacts on future economic well-being compared to those who leave after 26. Thus, between 16-26 years old is an optimal age range for young adults to be independent.