Millennials are ‘dramatically’ poor, yet they are to blame for their current financial condition. Many companies and economists allege these young people for being post-consumerist, but the reality is they are just being poor.
Numerous studies reported that millennials are poor. A Delloitte study reported that US millennials below 35 years old are financially worse than the previous generations when they are at that age. Reportedly, the net worth has fallen more than one third since 1996.
Another study by Fed Reserve also disclosed that Millennials have a lower net worth than their parents at the same age. That being said, the report disclosed that many millennials are moving from big cities to live in the suburbs due to the lack of money.
Australian millennials also experience the same phenomenon as US millennials. A report by the Brotherhood of St Laurence divulged that millennials between 15-24 years old are unemployed.
Elsewhere in Europe, millennials also undergo indifferent from the foregoing. However, the condition is not as taxing as the one millennials in the US are currently in.
Also Read: More Saving and Reduce Shopping, Millennials Happier
The Reasons Why Millennials are Poor
Various factors influence why millennials have less spending habits and prefer to live under a considerably ‘simple’ life. These factors are mostly economic, but there also exist other factors.
The first being is the economy. While many older generations believe that millennials are killing the economy because they spend less and hinder the production-and-consumption cycle, it is actually vice versa.
The price of products and millennials’ started salaries is unequal. Besides, the competition in the work world is far more savage than in the previous generation, thus, the study proved that millennials are also prone to mental burnout.
It is justifiable for millennials that they spend money on simpler and more inexpensive stuffs to suppress their mental breakdown. Ergo, it is, in the same period, also disturb millennials’ saving acts.
Another factor is due to education. In the US, for example, millennials are struggling to pay off their education debts. Ironically, education fees are getting more and more expensive, yet the guarantee to acquire a sustainable job is getting smaller.
