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Millennials, parents not cutting cord on shared phone plans

By Karen Mansfield staff Writer kmansfield@observer-Reporter.Com 5 min read
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As millennials take steps toward independence – renting an apartment, starting a retirement savings plan and leaving their parents’ health insurance plan – there’s one area where they’re slow to cut the ties: the family cellphone plan.

But, that’s not necessarily a bad thing. Being tethered to the same phone plan, it turns out, is often cheaper for everyone in the family.

“Unlike the ‘good old days’ when we left the nest and cut most financial ties with our parents, today – thanks to the wireless options out there – some families are choosing to stick together, even when distance is involved,” said Steve Van Dinter, public relations manager for Verizon.

Nearly half of smartphone or mobile phone owners with children 18 or older have kept their adult children on the family cellphone plan. And 53 percent of those parents said the child pays for some or all of their bill, according to an online survey commissioned by NerdWallet, an online financial management website, and conducted by Harris Poll.

Depending on the plan and carrier, families can save between $180 and $300 per person each year.

According to the survey:

  • 51 percent of parents who have an adult child on their plan said that they’ve chosen the arrangement because it saves both parties money.
  • 21 percent of parents who have or had an adult child on their family cellphone plan and pay or paid the entire bill said they offer no other financial support.
  • 65 percent of parents who previously had an adult child on their family plan said the child chose to leave the plan.

Holly Martin of North Strabane Township doesn’t mind having her three sons, Andrew, 27, Michael, 25, and Jacob, 22, on the family cellphone plan.

In fact, Martin and her husband, Ed, have added Andrew’s wife, Kelly, and Michael’s fiancée, Rose, to their Verizon family plan, which allows as many as 10 lines.

The Martins pay the monthly bill, and in return, their sons and their sons’ significant others help out at the Martin Family Dairy Farm.

“We decided it was cheaper for Kelly to get on our plan, and we did the same thing for Rose. They all offered to pay us every month, but I didn’t want to get into having to collect payments,” said Martin. “We’re blessed to be able to pay for their phones, and we’re glad to do it.

Covering the cost of the phone bill has also helped Martin’s children get on their feet after college.

“They don’t have a lot of money. They’ve all graduated from college and trade school and have full-time jobs, but they are all starting out. And when you’re starting out, you’re not making a lot of money.”

While there are parents who pay for their millennials’ phone bills, more than half of adult children help pay the bill, according to the survey.

Angela Wadding, 26, of Oakdale, splits the phone bill with her mother, Elaine.

“Sharing the bill has definitely helped me with managing money and saving money,” said Wadding.

Wadding pays her mother monthly, and monitors the data usage. Occasionally, Wadding’s mom will cover her bill, as part of a birthday present or when Wadding is short on cash.

Wadding looked into getting her own phone line after graduating from Waynesburg University, but realized her monthly bill would be higher, while her data package would be significantly lower.

Other findings from the study showed:

  • The average age of adult children currently on a parent’s plan is 28.
  • Among parents with an adult child currently on their plan, 33 percent say the child is 30 or older.
  • The average adult child currently on a parent’s plan in the Northeast is 26. In the Midwest, parents let their grown kids stay on their plans longer – the average age is 30.

“People realize the value of coming together as family and pooling resources and reaping savings. That’s ultimately what’s driving it,” said Verizon’s Van Dinter.

Increasingly, Van Dinter noted, cellphone users are grouping with friends or extended family members to share the cost of phone plans.

Barbara Somma of Canonsburg has six people on her phone plan, including two children, her mother and her husband, Peter’s, aunt. They share 20 GB of data, and the unused data carries over each month.

“My parents’ phone bill, without smartphones, was astronomical,” said Somma. “I can add lines for $15 a line, so I just told my mom I would add her to my plan and she could just pay me every month. The same with Peter’s aunt. Peter and I have to pay a base rate, anyway, no matter how many lines we have. It just makes sense.”

Van Dinter offered other tips for saving on a phone plan. Determine how much data you use each month, and get a plan that meets your data needs. Increasingly, families are splitting the cost of unlimited plans.

“When you’re looking for a plan, first and foremost, make sure the phone plan is going to work for what you want to do,” he said.

Also, consider a prepaid family plan.

Wadding said she pays all of her other bills and expenses, and her parents are happy with the phone bill arrangement.

“Really,” she said, “it is just about saving money.”

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