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Why are millennials so bad with money that is what we are going to be talking about in this video today so recently money under 30 conducted a survey to test the financial health of millennials what they did was they surveyed 612 american millennials to try to understand what it is that is going on with this generation that is causing us to be so poor off financially
Now the first thing i want to say is that this is not necessarily all millennials because i have a lot of young people who watch my channel or here on the channel we talk about personal finance the stock market financial education and so there are a vast amount of millennials out there that are killing it financially but the majority of people based on this survey
Suck financially and we are going to talk about the main findings of this survey and why this might be the case if you guys want to read the survey it’s going to be the top link in the description below money under 30 is a great finance blog if you guys are looking to learn more about personal finance investing anything of that nature that’s gonna be down in the
Description below as well but i found these results to be absolutely shocking and there were a couple of them that i wanted to share with you so the first reason why millennials are so bad with money really is not our fault and that is the fact that college tuition has skyrocketed there’s a number of different statistics out there that are sharing data on this
About how much college tuition costs at this point in time but what money under 30 found in this survey is that 16 percent of a millennials surveyed listed their primary financial goal is to pay off student loans that is kind of a sad financial goal of your biggest goal out there is not to own a house it’s not to retire it’s just to get out of debt there are a lot
Of different reasons why people are struggling to get out from under their student loans but one of the main reasons is the fact that like we said tuition in this country is skyrocketing but there’s also this idea that everybody needs to go to college and there are a lot of good jobs out there you can get that do not require a college education and so i think this
Idea that college is essentially a prerequisite to life is a very old idea that a lot of people need to get out of their head college is the good choice and the right choice for some people but it is definitely not the right choice for everyone out there the second reason why millenials are so bad with money is because they can’t find jobs in their field and so what
They’re finding is that after you get educated after you get your college degree you come out and you’re in a massive amount of debt but you can’t find a job in your field this is another common problem among millennials and this survey found that 13 percent of millennials listed their primary financial goal is to get a job in their field again these are pretty
Sad numbers here 16% say they just want to get out from under their student loans 13% just want to find a job in their field and in my opinion the primary reason for this is that people are not thinking about what they’re gonna do when they get out of college there are some degrees that are more marketable than others and so if you have a degree in glassblowing
Or basket weaving it’s going to be hard to actually get a job unless compared to somebody who may have a degree in stem or something medical related so what i believe this comes down to is a lack of research or a lack of a plan as far as what you’re going to do after college and how you’re actually going to utilize that degree so that i do have to blame on the
Millennials going to college and seeking a college education in a non marketable or a non valuable skill the third reasons why a lot of millennials are broke or so bad with money is that number one and number two are preventing them from purchasing homes and so as a result they tend to rent for all of their authorities or they’re in their 30s and they’re still
Renting because they cannot get out from under their student loan debt they are underemployed or they’re not making enough money based on their education level and as a result they can’t afford to buy a home so they’re just burning money burning through cash left and right by renting and it’s extremely hard for millennials to buy homes if they’re stuck in this
Trap because their student loan payment is basically their mortgage i mean i have friends i’ve talked to in their student loan payments or five six seven hundred dollars per month that is astronomical that is almost what you would pay for a mortgage of maybe half a mortgage and so because of the fact that they are burdened so heavily by student loans and they are
Potentially not making the right amount of money based on their skill or they have a non marketable skill they are unable to save up money to pay for a house and they are renting and oftentimes what you’re paying in rent is going to be higher than what you would pay if you actually own that property so that is another reason why millennials are so bad with money
Is they are not able to buy homes because of their past choices here with education number four the fourth thing that this survey found here is that millennials are a little bit too optimistic about their future financially and so money under 30 found that 78% of the millennial surveys to fuel that their financial situation will improve compared to forty five point
Five percent of americans now there’s a very clear reason for this in my opinion and that is the fact that millennials have only ever been adults in a healthy and prosperous economy and during the 2008 crash the market crash when unemployment was through the roof most millennials were not of the adult age and so they’ve only ever been adults during a prosperous and
Healthy economy and so i believe that a lot of millennials are a little bit too optimistic about their situation improving now i don’t think their situation can’t improve but they’re actually gonna have to take some steps and take some action to improve it it’s not just gonna magically get better and so i feel there is an overall sense of optimism that might be a
Little bit overdone here dears based on the fact that they’ve only ever seen a prosperous economy the fifth thing that this survey found that was absolutely shocking to me is that nineteen point five percent of millennials would borrow from friends and family if they had an unexpected $500 expense this is just so mind-blowing to me that $500 a 500 dollar expense a
Fender bender or some kind of dental surgery costing you 500 bucks you’re gonna call up your friends you’re gonna call up your family members for a bailout this is just such a poor decision to be making in my opinion to have to rely on friends and family for a $500 expense and i think this is again another reason why millennials are bad with money is they are not
Too proud to ask for that i know personally i would never ask my friends or family for money i would figure it out i would do whatever i had to before i crawl to my friends and family and said hey can i get hundred bucks i’m in a pinch but i think a lot of people a lot of millennials would be totally willing to do that and that is more or less a mindset problem
In my opinion of having that willingness to go out there and you know ask your friends and family for money in a pinch number six the sixth thing found here which is why millennials are going to be so bad with money going forward is the fact that 51 point six percent of millennials are not contributing to retirement accounts and ten percent don’t even know if they
Even have one that means that sixty one point six percent if you lump this together they either are not contributing or they have no idea if they have one and this is why they’re gonna struggle so much financially going forward is that most millennials of these millennials surveyed here are not contributing towards retirement and it just shows you how bad this
Financial landscape is here because anybody who understands compound interest knows that it’s the time value of money and if most millennials are not contributing towards retirement accounts they’re not going to have enough time or as much time for compounding to take place and for them to earn money from their existing amount of money so that in and of itself is
Going to be a huge financial problem for millennials and then number seven the seventh thing found by this survey here is that 36 percent of millennials don’t know their credit score and if that’s not bad enough 35 percent have zero credit cards this just comes down to in my opinion a lack of education whether it be from schooling whether it be from parents friends
Whatever it is there is a lot of bad stigma out there surrounding credit cards and credit cards are not the root of all evil as they’re made out to be and it’s very important to have good credit as a young person if you’re going to be buying a car if you’re going to be buying a home a lot of places if you’re looking to rent from that place they’re going to run your
Credit and so if you don’t have a well established credit you’re going to be paying higher interest rates on credit card payments higher interest rates on auto loans if you ever want to buy a house you’re gonna have to get somebody to be a co borrower with you it’s going to be a massive headache and so again this right here is another reason why millennials suck
Financially they don’t know their at score and a lot of them one third of them have zero credit cards meaning they have no established lines of credit building their credit score and so anyways guys this is what this survey here money under-30 found to be a lot of the reasons why millennials are struggling financially and i would love to hear what you guys think
About this do you fall under these statistics here or are you among the people that are doing well financially as a millennial i’d love to hear what you guys think down in the comment section below but anyways guys that’s going to wrap up this video like i said i linked up to money under 30 as well as this survey if you guys want to check it out in the description
Below definitely a great resource for personal finance and investing articles and content everything like that but thank you guys so much for watching this video i hope you enjoyed it and i will see you in the next one
Transcribed from video
Why Milllennials Are So Bad With Money… By Ryan Scribner
