Millennial face the most uncertain economic future of any generation since the Great Depression. Decades of torpid wages followed by the recession and the net worth and income gap between the rich and middle class is at its highest point in the past nine decades. As attitudes and habits collide with financial reality, a severe economic dilemma is emergent.
1. What are the current statistics?
Although millennials have frequently been labeled as spoiled, materialistic, and burdened with the sense of entitlement, most of them feel that they will not be able to achieve goals like buying a house, finding their dream job, or retiring until much laer in their lives – more than their parents did. In the recent financial literacy survey, millennials did worse than any other age group as they show higher rates of overdrawing checking accounts, being late with mortgage payments, and having an issue with medical costs.
2. Investment philosophy
The 200 8 market crash has led to the embracing of a progressively global mindset, with factors such as environment and social responsibility frequently playing a significant role in where millennials put their money. Also, millennials are more interested in having a personal relationship with whoever manage their money than ever before, despite the use of online and mobile technology to perform several investing functions.
3. Spending habits
According to the recent survey from the American Institute of Certified Public Accountants, over three-quarters of millennials want to have the same cars, clothes, and gadgets as their friends, and about half of them use a credit card to pay for necessities like utilities and food.
You can also see the effect of the Great Recession with millennials in the reduction of car and home purchases, and card debt, as lenders have intensified their requirements for extensions of credit and loan. Surprising, a significant number of millennials primarily live within their means, even though their overall level of financial literacy is reasonably low.
Millennials face a couple of challenges that will only be sincerely understood in retrospection. The future of the millennials is more uncertain in some respects than it is for any other generation, and they are rapidly learning that there are only a few they can count on. The ability of millennials to succeed financially will depend on many factors, including political and economic situations.