Majority of Millennial Households Are In Poverty
A recent Pew research analysis shares the woes of Millennial's (18-35 years old) financial hardships. The majority of millennial households are in poverty. Millennials are the largest population that are not the head of household.
Even so, the latest available Census Bureau data indicate that Millennial-run households represent the largest group in some key categories, such as the number of households living in poverty.
Due to financial barriers, millennials are living with family members or friends, they're not able to afford a mortgage - so instead they rent and expensive student loans control any potential for disposable income. A significant portion of millennials in this predicament are single mothers. Either way, between mounting costs of living, student loan debt, unlivable wages - this trend is not immune to other generations just more prevalent in millennials.
Millennials’ prominence among renters reflects more than their youth. They are also significantly less likely to own their home...(Pew Research Center)
Ben said "I can 't really speak for others on this subject but for me personally with the amount of debt I have from college yes it was really tough to keep up. I had to live in my parents basement for almost two years to be able to afford Rochester rent prices, and continue making just minimum payments on my loans. If I didn't have the luxury of living in my parents house, I definitely wouldn't be able to afford half of what I can now"
But there's some millennials that do take the plunge to purchase a house. It doesn't come without sacrifice though. Sunny adds "I haven't struggled with getting a house due to student loans, but we pay almost as much as our mortgage to pay our student loans and will do so for the next 15 years. So our disposable income is very slim and in order to make payments we have to earn more and that has pushed us into a higher tax bracket its a never ending cycle."
Debt is a big issue. Brittany shared " When I went to school, I was given "extra" money for living expenses and whatnot and really wasn't told about how paying it back worked or interest compounding. It's been a struggle having $30,000 in loans to work toward paying because it does drag your credit. Kids in high school get credit card and loan apps before they're even 18." Brittany mentioned that debt management should definitely be a course offered before any student takes on debt.
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