(Newswire.net — December 23, 2015) — Generation Y has been a highly criticized and troubled generation. Millennials are those born between 1981 and 1997. They have endured a great deal of change and adversity in their short lives. Millennials have faced rising tuition costs while being urged into college. Many graduated around the time of the recession and found an absence of good jobs. These young people start life with greater amount of debt than any past generation. Millennials are often criticized for being bad with money, but why are these adults so broke? Included here are a few reasons the millennials have struggled with money from the get-go.
High Tuition Cost
It is no secret that the cost of getting a higher education seems to be getting higher itself every year. Millennials faced the highest tuition costs in recent years and have been struggling to find high enough paying jobs to cut back their debt. The average American undergraduate has $29,400 in debt when they get their degree.
Starting adulthood with this crazy debt-to-income ratio, sets most young graduates up for failure; resulting in a move back home or living on ramen. Millennials have then begun to have trouble following normal life milestones, like marriage and home-buying, because they are so sunk in student loan debt. Even if a college student chooses to work through college to try to pay for it, they would need to be working nearly 17 hours a day at minimum wage to keep up with tuition.
Lack of Savings
The inability to get out of debt creates a problem for millennials attempting to look towards the future. This generation has shown remarkably low percentages for buying homes, getting married and getting out of debt. Without any extra money from their debt payments each month, Gen Y is finding savings an impossible goal. And with the instant-gratification mindset present in today’s society, it is no surprise any extra cash is not going to be squirreled away.
Idealist Mindsets
Despite all of the odds being stacked against them, studies have shown that millennials seem to be one of the most optimistic of generations. They genuinely believe the market is on the upswing and saving their meager earnings now is a waste of time. With stories of millennials managing to retire by age 30, it is no wonder other Gen Y-ers believe they too can find success.
While previous generations had the creation of the internet to look forward to as a booming financial enterprise, Gen Y adults are looking at an already saturated market. To become successful online is now an incredible challenge, as you are one voice or idea in a sea of millions. In spite of this adversity, many millennials still believe they have a money-making plan to save themselves from the daily work grind.
If the “era of Googlers” has shown us anything, it is that they believe in instant-gratification. This means there is a lack of emphasis put on long-term consequences as millennials are living in the here and now. While their charming irresponsibility may be cute now, it may hurt them as they approach their forties with no assets, investments or plans for retirement.