According to a study conducted by Moody’s Analytics, those under 35 are not saving their money. As a matter-of-fact, the savings rate for people under 35 has declined to negative 2%, this means that millennials’ expenses exceed what they earn. Not surprisingly, millennials are the only age group that has a negative savings rate. People from age 35 – 44 on the other hand, have a positive 3% savings rate. Unfortunately, millennial are struggling financially even though the country’s unemployment rate declined to 5.8% in October because 214,000 jobs were added to our economy.
Although one might think that this negative savings rate is due to irresponsible financial habits, millennials are truly having a difficult time staying afloat financially because of harsh economic circumstances we have nowadays. One of these harsh circumstances is the fact that wages have been stagnating since that 1990s and living expenses are increasing rapidly, as is college tuition. Another common issue that many millennials face is that they take on a huge amount of student loans to obtain the necessary skills to get hired in our increasingly competitive workforce and when they do find a job their upwards mobility is limited due to baby boomers retiring at a much later age.
Even though crippling debt is a reality for many young people, there are still options available in order to reduce or even eliminate that debt and our office may be able to help. Call us for a free consultation with an experience Florida bankruptcy attorney at (305)-820-0334 today!
Source: Wall Street Journal