The State of Money and Debt Among Millennials
Debt Among Millennials – MOA Accounting Miami beach accountants are sure you’ve heard of this generation. Often associated with over-the-top lattes, avocado toast, and subscription boxes delivered at home for just about anything. According to Wikipedia, Millennials are also called Generation Y, right before Generation Z and after Generation X.
In other words, born in early 80s. But popular media, includes Millennials to be born as late as 1996.
This population is associated with confidence and entitlement. The Pew Research Center estimated that by this past year, Millennials will surpass the Baby Boomers Generation to become the largest generation in the U.S. Time Magazine estimated there was about 80 million Millennials in America.
Millennials are highly educated and have been born right into the digital age.
They communicate via text messages, develop friendships through social media, and shop right from their phones. They have high expectations for career advancement, salaries and the like. However, MOA Accounting Miami beach accountants found out that a recent study by the Balance reported 9 in 10 affluent Millennialls are in debt. That’s right, even though Gen Z, Millennials, and Gen X are so different, they share how they view credit, and debt.
However unlike generations before them, Millennials don’t think of paying off their debt as their number one priority.
In fact, living comfortably and saving for retirement is more important to them. For example, a Charles Schwab Index for 2017 reported that 60% of Millennials will buy a cup of coffee that costs more than $4, compared to only 40% of Gen X’ers and 29% of Baby Boomers. 79% of individuals polled in same study said they would spend money on dining out versus only 56% of Baby Boomers.
Debt Among Millennials – Even though they make a more than average income, 28% of affluent Millenials will never get out of debt.
They are also more confused about what is considered good debt and bad debt. Mortgages for example are considered good debt because it typically appreciates over time, while a car loan is considered bad since that asset depreciates over time. 1 in 4 Millenials think credit card debt is a good thing, even though that’s a misconception.