Each generation has their standards of living. Millennials aren’t an exception. Even though their economic situation is discussed aloud as the most challenging, there are some reasons for this. University loans and the coinciding debts (especially in USA), the outcomes of the latest recession, higher expenses towards housing and living costs, excessively competitive job markets, etc. don’t make their life easier.
Let’s take a closer look at the financial situation of millennials.
Millennials are people between 18 and 35 years old, also known as generation Y. It’s the largest and most powerful consumer generation (1.8 billion) surpassing Baby Boomers (1.1 billion). These young adults have totally different habits of buying, spending, and saving.
This generation grew up witnessing the beginning of the technology era and they adopted smartphones and social media at very early stages of their lives.
It is counted that on average an annual salary of these young adults reaches 30,781€. It’s 20% lower than the average earnings that a baby boomer had at the same age. Additionally, other studies revealed that millennials’ household incomes are the lowest comparing with other generations; the situation with homeownership is also very similar. It’s foreseen that millennials will not be able to retire till the age of 75. All the circumstances mentioned above have a big impact on their lives.
Millennials are often stereotyped as self-entitled and narcissistic. Many of them believe they’re owed more than they’re really worth, or on the contrary; they demand high salaries and gainful jobs, despite having limited training and experience. However, we have to admit, this generation is facing totally different challenges than previous ones.
Moreover, it’s hard to predict if their earnings will make progress any time soon. It seems the unemployment stays the same as it was a few years ago. Anyway, the change takes time since many factors affect the current situation. However, even earning less, millennials proved to know how to save and take the best they can, disregarding clichés and expectations.