Pew Research Center distinguishes millennials as individuals born between 1981 and 1996. This means individuals in this age group may currently be between the ages of 26 and 41. The generations before millennials sometimes say millennials do not have any financial sense. However, a new report says this may not be the case and other factors contribute to how millennials handle their finances.
Morning Consult, a data collection technology company, did a consumer report on how millennials feel about financial topics for their current and future financial ideals. This State of Consumer Banking & Payments report provides statistics on how that generation feels about their current financial situation.
According to the report, 45% of millennials say their financial situation prevents them from getting what they want in life. This group also feels they will never get ahead financially. Many of them feel it is a consequence of two recessions, soaring living costs and student debt.
Millennials have on average around $38,000 in student debt. However, everyday needs like healthcare, housing and groceries are items with high price tags.
Something that may also often be in the minds of millennials is The Great Recession. This was the period between 2007 and 2009 when the older set of millennials witnessed the economic decline in America. Now they and the younger set of millennials are witnessing the recession of the coronavirus.
Both sets are now on the job search again, dealing with low wages that slowly increase and have put owning a house on the backburner as a result of this new recession.
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Financial Concerns
The report by Morning Consult also said that while American millennials feel unsure about their financial situations, millennials around the world do as well. Phrases that the report included and asked for opinions on were such things as: “I am concerned that the money I have or will save won’t last;” “My finances control my life;” “Because of my money situation, I feel like I will never have the things I want in life” or “I am behind on my finances.”
As is normal for any age group, millennials have dreams and wishes to accomplish their financial goals. A few are that they wish to establish an emergency fund, create and maintain a budget, improve their credit, invest money, save for retirement, have a vacation or wedding and eliminate their debt. Very normal things that anybody of any age group may want.
Another set of goals listed in the report is that adults wish to save for their education or start a business. For example, 69% of millennials desire to save for their education compared to 42% of all U.S. adults. As a reminder: since millennials are 26-41 years old, this is most likely referring to further education beyond their first job qualifications. In regards to starting a business, 67% of millennials wish to do so compared to 40% of all U.S. adults.
Millennials also admitted to sending payments directly through a social media platform or utilizing a “buy now, pay later” service more often. The age group also admitted they made investments or purchased cryptocurrency and many more.
The report closed with: “With many of their prime wage-earning years marred by recessions and an ongoing pandemic, millennials are exhausted, and their outlook on both near- and long-term finances is less than optimistic.”
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Are you a millennial or from a different generation? What are your thoughts on millennials having financial insecurities? If you or someone you know would enjoy this, pass it on.
