![]() With student debt growing and income growth slowing down, more and more millennials are starting life on the back foot, and spending more than they earn. This isn’t that surprising though, because in order to save or invest, you need to have the available and disposable funds to do it, right? It’s a similar story when it comes to saving, with just eight per cent investing in stocks and shares, according to Fidelity’s research. Older millennials - defined as those between 25 and 34 - aren't doing much better, with 67 per cent having less than $1,000 in their savings accounts and 33 per cent have nothing at all. While saving for a comfortable retirement was the priority for the baby boomers, research by GOBankingRates shows that 72 per cent of millennials aged between 18 and 24 have less than $1,000 in their savings accounts and 31 per cent have none whatsoever. Therefore, how are we expecting this generation to save, invest, buy their first house, or even get married and have children? Between 20, the average wage of the lowest earners in the US actually went down by 0.4 per cent, to $8.62 per hour, compared to pre-recession figures, according to the Economic Policy Institute. Additionally, income for 15-24 year olds fell by five per cent between 20. This means, that a student’s disposable income has reduced. The average US student debt currently stands at $20,926, compared to 2003, when it was $10,649, according to Goldman Sachs. This isn’t surprising, seeing as the average cost of student debt has almost doubled in the last 14 years. The average US student debt currently stands at $20,926, compared to 2003, when it was $10,649, according to Goldman Sachs The average cost of student debt has almost doubled in the last 14 years. A quarter of millennials worry about their finances all of the time, according to the second biennial Fidelity Investments Millennial Money Study.įurthermore, almost half (47 per cent) have accepted some form of financial assistance from their parents since branching out on their own, such as help with their cell phone bill, utilities or groceries (but I'll get to that another time)! Money is the biggest worry for this generation. Aren’t their spending behaviours and experiences supposed to be setting the precedent for future generations? Why then, are we penalising them for the way they live, and hindering their growth, instead of helping to shape it? I believe it’s ever more important to help them to make better decisions about their future – because, after all, our future is in their hands.įor example, if we treated them in the same way and gave them the same opportunities as the baby boomer generation, could we maybe transform their lives – a win, win for all? ![]() They are also a generation of debt, with US millennials now owing more than $1.3trn in debt.īut, isn’t this the generation that’s meant to be shaping the future of finance and technology. ![]() They have less to spend, because, relative to the cost of goods and services, their money is not worth as much. This generation are coming of age during a time of technological change, globalization and economic disruption, meaning that their behaviors and experiences are different to those of their parents.įirstly, of all, they are far poorer than their parents were. Goldman Sachs research estimates that there are approximately 92m millennials in the USA alone, and a further 11.7m in the UK. The millennial generation is the biggest in history, eclipsing that of the baby boomers.
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