Financial Issues Millennials Face Today

Millennials, identified as those born between 1981 and 1996, are the first generation to have grown up completely in the digital age. Not only are they very tech-knowledgable, but they are the most educated generation in U.S. history.

Moreover, they have a strong sense of community and focus on society at large over individual needs.

One in three have their own business, while one in five say that business is their main source of income. Millennials are flexible, pragmatic idealists, frugal, compassionate, progressive, confident, practical, communicative, mobile, and adventurous.

They are also struggling financially

The bulk of millennials entered the workforce in the middle of the Great Recession, making finding a job very difficult. During their time in the workforce, wages have not kept up with the cost of living. Therefore, millennials often struggle to make ends meet and have trouble meeting traditional milestones like getting married or buying their first home.

Top 3 Issues Facing Millennials

• Student Loans – In fact, 14.8 million millennials have student loan debt, which is more than any other generation. The average balance for a millennial student debt borrower is $38,877. Because of student loan debt, millennial home ownership has fallen. The average baby boomer bought their first home at 25. For millennials, that number has risen to 35.

• Housing Cost – Census data shows that home prices have increased 118% since 1965. During the same time, wages have increased by just 15%. In the past year, the cost of rent rose by 4%. This is higher than the previous five years with an average increase of 3.3%. However, the increase doesn’t paint an accurate picture. Once eviction moratoriums were lifted after COVID, rents soared, shooting up 14% in December 2021 compared to one year earlier. At the same time, wages only increased 5.5%. Rent in 2022 is expected to rise by 10%. As rents increase at a faster pace than wages, millennials who have yet to purchase a home get further behind.

• Wage Growth – The average Millennial salary is about $47,034, according to the U.S. Census Bureau. The average Millennial household makes $69,000 a year, according to the Pew Research Center. This isn’t a wide departure from previous generations – but once you factor in inflation and the amount of debt millennials have, it becomes apparent that this generation is actually worse off than their predecessors.

Where to Turn if you are Struggling

The compassionate team at the Bond & Botes Law Offices helps 1000s of people every year throughout Alabama and Mississippi end the stress ov overwhelming debt. When your income does not keep pace with your ever-increasing housing costs, the rising cost of essentials like insurance, food, and fuel coupled with your student loan obligation you need solutions. We provide an absolutely free consultation focusing on helping you resolve your debt call 1-877-581-3396 of email us through our website.