There are many people in the millennial generation who struggle with their finances. Not only are student loans at a record high, but many people in this generation also have record high levels of credit card debt. It is important for everyone in society to understand the significance of an entire generation struggling with their finances. Here are several reasons why it is important and how millennials can start to take charge of their financial situation.
Student loans are one of the biggest issues facing people in the millennial generation today. Not only are student loan balances at a record high after graduation, but many people that have graduated from university are having a difficult time finding jobs in their field. All of this adds up to an entire generation of people that feels trapped financially after graduating from university. Many students have said that they are going to delay having children and getting married due to their finances. This is a societal problem that needs to be addressed as soon as possible to prevent further damage. Students that are currently in school should work as hard as possible to graduate with as little debt as they can.
Credit cards are other huge issues people face in the millennial generation. For young people, it is common to pay for everything on a credit card. However, over time this can bring big consequences for people who are starting out. It’s important to research the best credit cards to find the ones that offer a low interest rate. If a young person falls in to credit card debt early on in their life, it can be a difficult hole to dig out of.
With the job market weak in a variety of areas, many people in the millennial generation are not making as much money as they want to. A huge percentage of graduates are working in jobs that do not require a college degree. This can have difficult effects on young people. First of all, they will not be able to pay off their student loan balances in a timely manner. In addition, it is difficult to build wealth over time with a low income and it can be hard for them to deal with the psychological effects of knowing they aren’t reaching their full potential.
Increasing income and paying off debt are two things that millennials can start doing today in order to improve their financial situation. There are many people struggling in this generation with their finances. However, with just a couple of changes to their lifestyle, many people can make a huge difference in their financial situation.