Millennials are screwed. We’re on the hook for the student loans we can’t pay, facing mounting pressures to buy homes and get married, then having kids and struggling with the costs of raising them.
Millennials are supposed to be more responsible with money than our parents were but that was before we got saddled with crushing debt, stagnant wages, and a miserable job market. This is how it happened.
| Takeaways |
|---|
| 1. Millennials face significant economic challenges. |
| 2. The reasons behind millennials’ economic struggles are explored. |
| 3. The impact of economic factors on millennials’ opportunities. |
| 4. Solutions and strategies to overcome these challenges. |
| 5. Understanding the larger societal and economic context. |
College And Career
You’ve been told that college is a great investment, and it’s true: if you’re wealthy enough to afford the hefty tuition, then you’re probably going to end up with a decent job after graduation. Unfortunately, not everyone can afford those steep costs.
Even worse than this is the fact that the most expensive colleges and universities aren’t necessarily delivering better careers or teaching more valuable skills than their lower-cost counterparts.
Instead of wasting money on an expensive degree from an overpriced school, consider some cheaper alternatives or try one of these programs instead:
- Code Bootcamp
- Online courses at Udemy or Coursera
- Internships
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Education Isn’t Working
The education system as we know it is not working. College is not working. Neither is high school or even kindergarten. The reason for this is that education has been created to serve the people who are already in power the wealthy and powerful.
But education isn’t just failing young people, who face mounting debt and a lack of opportunity because of it; it’s also failing our society at large by failing to prepare us for life in the modern world and its challenges.
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We Can’t Buy Homes
Homeownership is a significant marker of adulthood, stability, wealth, and personal growth. People who own homes are more likely to vote and volunteer in their communities. They have stronger relationships with their neighbors.
And they’re more likely to be involved in local government because they feel invested in the community.
Homeownership is also associated with higher levels of education people with higher levels of education tend to live in neighborhoods where home values are higher and therefore attainable by homeownership.
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We Don’t Have Retirement Savings
You’re probably familiar with the story: most young people are worse off than their parents. They have less wealth and lower net worth, they spend more of their income on housing, and they’ve been forced to delay major milestones like getting married and owning a home.
But what you may not know is that this is happening because millennials aren’t saving for retirement at the same rate as their parents did when they were younger.
This means that millennials will have to wait longer before retiring; or, if they do try to retire early, it means that they’ll have less money saved up for later in life (notably during periods when health care costs tend to increase).
We’re Switching Jobs Frequently
You may have heard that millennials are more likely to quit their jobs than any other generation.
The numbers, however, are staggering: according to a study by Deloitte and Millennial Branding, 57 percent of millennials surveyed said they planned to stay at their current company for less than three years.
Comparatively, only 31 percent of Gen Xers and 19 percent of Boomers said they planned on leaving their employers within the same time frame.
That’s right more than half of all millennials expect to switch jobs within three years!
Why? It’s not just because they’re fickle or disloyal it’s also because they’re experiencing some serious financial obstacles in the workplace (which we’ll get into later).
Our Paychecks Are Shrinking
You’re not alone. You’re making less than your parents did, less than your friends, less than your boss, and even less than some of the people in your office.
You’re probably feeling a little anxious about this situation. You have a growing stack of bills and not enough money to pay them off. You’re wondering if it will ever be possible for you to buy a house or even just get back on track with saving for retirement.
And now that you know how much things cost in life the cost of college tuition has increased 1,200% over the past 30 years it seems like no matter how hard you try or what sacrifices you make, there’s no way out from under this mountain of debt (and student loans).
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We’re Stressed Out About Money
One of the biggest sources of stress for millennials is money. According to a 2018 study by Northwestern Mutual, 49% of millennials say that finances are the cause of their stress.
That’s more than twice as many as any other generation. While that percentage may not be surprising, what is surprising is why this number is so high.
In general, millennials are less likely to have access to pensions and 401(k)s than older generations.
And while 70% of us have student loans (20% higher than Gen X), we also carry more debt overall about $1300 more per person on average than Gen Xers do and about $5200 more per person than baby boomers do!
We’re Seeing More Of The World
It’s not just that millennials are traveling more than previous generations; they’re also spending more money on travel. The average millennial will spend over $16,000 on trips in their lifetime.
And if you’re wondering whether it seems like millennials’ parents were better off than yours were, it’s worth noting that the cost of living has gone up for everyone in America since the 1950s.
We’re seeing more of the world because millennials are traveling for work and leisure purposes alike, which gives us a chance to see how other cultures do things differently from our own and maybe pick up some ideas that could improve our lives back home!
Millennials are also choosing to travel with friends: according to a survey by Airbnb and Hostelworld (UK).
Nearly half of all millennials prefer sharing accommodations with friends instead of booking private rooms or apartments alone (as opposed to only 20% who prefer staying in private rooms).
We’re Getting Married Later In Life
You might not be able to plan to get married at a young age, but you can prepare for it by starting to save and invest early.
If you can start saving $500 a month in your 20s, that’ll give you more than $70,000 saved by the time you reach retirement age.
But if your savings begin in your 30s or 40s, it’ll take much longer to build up a nest egg large enough to retire on and if you wait until 50 years old before setting aside serious money in an IRA, then chances are good that by the time you hit 65 (the official retirement age).
Social Security won’t be enough to cover all your expenses.
A later marriage also means less time with which to build wealth together and even though those 20-year marriages tend not to last very long anyway who wants their kids growing up without their father present?
We Don’t Want Kids Or Are Having Them Later On In Life Than Our Parents Did
You may have heard that millennials are having fewer kids than previous generations, and that’s true: Overall, the birthrate in America has been declining since the early 1960s. But there’s more to this story than just an overall decline.
Millennials have a much lower birthrate than their parents did at their age; according to data from Pew Research Center, only 17% of millennials are married at ages 25-29 compared with about 44% for Generation X at those ages.
That means that fewer millennials are getting married and starting families at younger ages than earlier generations did so it’s no surprise that millennial fertility rates are lower as well.
But what does this mean for you? If you’re in your 20s or 30s today (which most people reading this article will be), then chances are good that you’ll be delaying having children until later on in life yourself!
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Our Friendships Are Changing
You may not have seen what’s happening to your friendships. The transformation is subtle, but it’s happening nonetheless.
It all comes down to social media. Social media has altered how we interact with each other how we communicate, how we learn about each other and ourselves, and where we go to hang out.
The first casualty in this new landscape is friendship itself: We’re spending less time with our friends, less time in person, and more online.
As a result of these changes, millennials are experiencing fewer meaningful interactions than previous generations did at the same age; they’re also having fewer opportunities for spontaneous interaction outside of work or school (thanks partly to increased telecommuting).
Our social lives are becoming increasingly virtual as well as virtualized by smartphones and as a result, they’ve become shallower and more superficial over time.
We’re Less Happy
You are less happy than previous generations. According to the World Happiness Report, millennials (those born between 1981 and 1996) ranked lower than any other generation in terms of happiness.
This is a stark contrast to earlier generations, which ranked higher than their successors. Millennials are more likely to be depressed or anxious than any other age group and have a greater likelihood of suffering from loneliness.
The study notes that this may be due in part to technological distractions leading us away from social interaction: “[Y]ounger people are spending much more time with screens now than ever before,” it said in its report published by The Atlantic in June 2017.
“They’re also less likely than older people were when they were young adults.”
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Conclusion
Does this mean that our lives will never be as good as our parents’ lives were? Maybe not. But, it does mean we should embrace the unique set of circumstances we’re facing and find a way to thrive within them.
It also means that we need to learn from past generations and not make the same mistakes they did. We’ve seen how ignoring climate change has impacted us, so let’s take that knowledge and do something about it now.
Further Reading
Here are some additional resources for further reading on the topic of millennials and their economic challenges:
The Financial Struggles of Poor Millennials
This in-depth article from HuffPost explores the financial difficulties faced by poor millennials, shedding light on the systemic issues contributing to their economic struggles.
The Millennial Recession: How COVID-19 Impacted a Generation
The Washington Post provides insights into the impact of the COVID-19 pandemic on millennials, delving into the economic repercussions and long-term implications for this generation.
Did Millennials Get Screwed by the Economy?
Business Insider presents a different perspective, questioning whether millennials have truly been disadvantaged by the economy. The article explores factors that challenge the perception of millennials’ economic struggles.
FAQs
Here are some frequently asked questions related to the challenges faced by millennials and their economic situation:
What are the main economic challenges faced by millennials?
Millennials often face challenges such as high student loan debt, stagnant wages, and limited job opportunities, which can make it difficult to achieve financial stability.
How has the COVID-19 pandemic affected millennials’ economic situation?
The COVID-19 pandemic has had a significant impact on millennials, leading to job losses, reduced income, and increased financial uncertainty. Many millennials have experienced setbacks in their careers and financial goals due to the economic downturn caused by the pandemic.
Are millennials worse off economically compared to previous generations?
There is ongoing debate regarding whether millennials are worse off economically compared to previous generations. While millennials have faced unique challenges, such as a changing job market and increasing costs of living, the comparison to previous generations is complex and depends on various factors.
What role does student loan debt play in millennials’ economic struggles?
Student loan debt is a significant burden for many millennials. High levels of student loan debt can limit their ability to save, invest, and achieve other financial milestones, impacting their overall economic well-being.
Are there any positive aspects or opportunities for millennials in the current economy?
Despite the challenges they face, millennials also have access to technological advancements, entrepreneurial opportunities, and the ability to adapt to changing work environments. Some millennials have been able to leverage these factors to their advantage and find success in various industries.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.