- Millennials a generation born between 1981 and 1996.
- Since they reached adulthood during the Great Recession, Millennials deal with a number of financial problems.
- Some of Millennials & # 39; the most important monetary problems student loan debt, inflating living expenses, unforeseen expenses and needing to save more on the centuries of life.
It is defined as a cohort born between 1981 and 1996, The millennium is a generation known for its technology, pursuing their passions, and killing a bunch of industriesThey are also known for imposing a number of financial burdens specific for their generation,
This is largely due to the fact that Millennials grew up or entered the labor force during the Great Recession, creating unique financial problems.
Although Millennials has benefited from a 67% increase in wages since 1970, according to the student loan report, growth was not crowned with an increase in the cost of living. This is not to mention the fact that the millennium is stuck in the debt of a student loan, they are working to make up for lost profits, and they need to save more on life stages, such as buying a house and retiring.
But many millennia are so attached to money that they rely on others – such as their parents or grandparents – for financial assistance,
Below are some of the most important problems with money Millennials face today.
Millennials are burdened with student credit debt, which is higher than ever
The crushing debt of a student loan is one of the most notorious expenses, exhausting the millennia. Studying in the college more than doubled since the 1980s; As a result, student loan debt is at a record high, with the average student debt per graduate who took out loans of $ 17,126, Business Insider reported in November,
Not only the number of students receiving student loans increased by 10% from 2000 to 2012, According to the report of the American Academy of Arts and Sciences, but students also began to borrow more money – the average amount of total credit increased to $ 20,400 from $ 16,500 in that time.
Millennials need to save more to buy a house
Housing prices are on the rise, and the millennium is paid for it – literally.
Millennials buying your first house today will pay 39% more than baby boomers who bought their first house in the 1980s, according to student Loan Hero, Indeed, tThe value of houses has increased by 73% since the 1960s, when adjusted for inflation.
Perhaps, that is why home ownership among the millennia is at a record low level – they have to spend more time save money to buy a house, In some cities it may take almost ten years to save up to 20% the initial contribution to the house, according to SmartAsset report,
Millennials are shelling up money for a growing rent
Meanwhile, many non-documentary millennia devote their hard-earned money rising rents,
Rent increased by 46% from the 1960s to the 2000s, taking into account inflation, according to student Loan HeroIn 1960, the average gross rent was $ 71, or $ 588 in today's dollars. By 2000, this number had risen to $ 602, or $ 866 in today's dollars.
Many millennia are struggling to create wealth
The report found that as of 2016, they had a welfare level of 34% lower, where they would most likely have been if the financial crisis had not taken place, which would make their slowest cohort to recover from the Great Recession. Since then they are struggling to catch up.
Shenon Insler wrote that underemployment, cost of living and student loans made it difficult to achieve millennial Student-creditor report,
More than millennia care for aging parents – and spend more money on it
An increasing number of millennia must care for their aging parents, in accordance with Claire Innberry of The Wall Street Journal, the proportion of educators who are young adults has increased by 2 percentage points, to 24%, since 2009, she said.
And, despite the lower wages, the millennium also spends more than the elderly educators. Scott Williams of the global Embracing Carers initiative told Ansberry that the millennium spent 27% more on their incomes in care than other generations in the same situation, and that one third of thousands of caring workers earn less than $ 30,000 in average.
The average cost of care for the elderly can range from $ 18,000 per year for adult day care to $ 91,000 per year for a separate room in a nursing home, Rachel Gillett of Business Insider previously reported, referring to commissioned by Genworth Financial.
Many millennia rely on their parents for financial assistance
It's hard to find money to take care of your parents when many millennia rely on them for financial help first. More than half of Americans (53%) aged 21 to 37 are so attached to cash that they have received financial assistance from the parent company, guardian or family member from the age of 21, according to The index of financial security in the country,
This money goes for both small and significant basic needs, such as cell phones, food and gas, medical insurance and rent.
Millennials need to save more money for retirement
Thanks to inflation, $ 1 million is not what it used to be. For 40 years (at about the time when the millenniums will retire or retire), savings of $ 1 million. The United States will have the same spending power as the $ 306,000, Earlier, Business Insider, referring to 2016 Time log evaluation,
According to one financial planner, for millennia, now 32 years old and planning to retire at the age of 67, the average annual savings out of $ 1 million will be below the poverty line based on inflation.
This means that millennia people need to save even more for retirement. This is not good, given that 25-34-year-olds save 5.3% of their income, by version of Vanguard, which manages 401 (k) accounts of 4.4 million Americans.
Many millennia also invest unjustifiably, preferring to use cash investments that do not bring much benefit.
"Millennials will have the largest retirement savings in history," said Greg McBride, chief financial analyst at Bankrate.com, previously said Business Insider, "The egg of the nest that they are going to accumulate on their own will be more than any other generation".