Posted July 18, 2017
The last decade has seen a marked increase in false assumptions regarding the millennial generation. Despite being the generation promising to make the world a better place, many people assume that due to the high percentage of millennials receiving help from their families, a number reaching 35%, they have a poor work ethic and are completely failing to plan for the future. The data simply doesn’t support those assumptions, however, with a greater percentage in the full-time workforce and higher savings rates than their Gen X counterparts.
The millennial generation faces a unique set of economic challenges. From cripplingly high student loan debt acquired while earning the college degree necessary for even most entry-level positions, to housing costs rising far faster than the median income, millennials deal with challenges different than any previous generation in getting a strong financial start in life. With many housing markets pricing the young families right out of the market, it’s no wonder so many of them still live at home, saving all they can.
Despite higher education rates than any other generation, a millennial with a degree can look forward to a median income comparable to that, adjusted for inflation, of a non-degree-holder in 1980. Savings account interest return rates don’t return enough to be remotely useful as an investment tool, while debt interest rates have skyrocketed. Millennials have responded by having far lower average credit card debt than their parents.
In order to combat the unique challenges they face, millennials are completely redefining the way Americans live, changing the face of professional industries across the board, and living lives in a completely different way than their parents and grandparents. This inevitably brings criticism and pressure from older generations, many of whom oppose change of any kind. Changing circumstances demand changing lifestyles, however.
Take a look at the infographic below for a direct comparison of millennial finances as compared to their predecessors.
Photo credit: Couple counting money — Image by © Jose Luis Pelaez Inc/Blend Image/Blend Images/Corbis
How Do Millennial Finances Compare To Previous Generations by Erica Quinn
While Canadians freak out over avocado toast and housing prices, let’s see what’s happening with Millennials in the United States.