On average, millennials earn less, spend more, and build very little equity – even into their 30’s. This is why I believe that millennials are in serious financial trouble.
According to Avant.com (see the awesome graphic below), the average millennial earns approximately $30,000 a year compared to an average of $50,000 for the typical American. Millennials are very obviously earning less.
Millennials are also taking on more debt than average – which is mostly due to the rising cost of higher education and the ridiculous simplicity of taking on student loan debt. The most recent 2015 grads took on….(drum roll)….$35,000 of student loan debt to get through college. Furthermore, because of the large debt payments that they’re faced with after graduation, millennials typically have very little in savings, which causes a need for personal loans….which only increases their financial woes. Millennials are very obviously taking on more debt.
Since millennials are earnings less and taking on more in debt, it should be no surprise that they’re also investing less. After all, what money do they have to invest? An astonishing 74% of millennials are not investing for their future, with (again no shocker here) 53% of respondents stating that they simply don’t have money to put into the market. Millennials are very obviously slow to invest.
Millennials Are In Serious Financial Trouble
As I see it, millennials are basically 10 years behind when it comes to debt payoff, healthy earnings, and investing (compared to their parents and grandparents). Instead of investing consistently for 40 years and retiring with $1 million in the bank (like mom and dad did), by waiting just 10 years millennials are setting themselves up for earning just $371,000 in their retirement accounts. That, my friends, is a pretty underwhelming number…
Millennials are in serious financial trouble…don’t you think?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.