Have you ever wondered what millennials are doing with their finances that has financial experts so intrigued? The financial challenges that the generations prior faced affect the financial habits of millennials, while their own challenges also change the financial patterns from previous generations. Here are a few facts to know about millennials and their personal finances that you should be aware of.
They’re Saving for Retirement Early
First of all, millennials are starting to save earlier for their retirement than past generations have done. This doesn’t necessarily mean that they’ll reach their retirement any earlier though. It just means that they know that it will take longer for them to reach the amount of money that they need to have saved up to be prepared for retirement with the inflation and financial issues occurring in the world. Many millennials are also more interested in investing their retirement money so it will grow exponentially over time.
They’re Delaying Home Buying
Another financial pattern that is happening among millennials is that they’re delaying home buying for many more years than previous generations. The housing market has increased a lot in inflation over the years, making homes much more expensive to buy. Mortgages have also become more difficult to attain without a certain level of financial income and stability. So, millennials have stayed in rental properties for a longer amount of time. According to Answering365, millennials spend almost $100,000 on rent before 30.
They Have High Student Loan Debt
Millennials also have higher rates and amounts of student loan debt than the generations that came before them. This is partially due to the accessibility of education and the emphasis placed on getting a college degree to have a successful career. According to lendingtree, Many more men and women have been taking out thousands of dollars of loans to get their college education. However, their post-college jobs haven’t always been high-paying enough to pay off those student debts effectively. The high rates of student loan debt are also due to increasingly expensive college tuition, which will affect the economic future of millennials.
So, if you’re wondering what financial patterns of millennials are affecting the financial conditions of the future, remember this article. Millennials are saving and investing for retirement early, delaying home buying, and racking up high student loan debt. These habits and results will inevitably affect the financial conditions of the rising generations in the future.
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