Financial issues for millennials

The generation born between the early 1980s and late 1990s is termed as millennials. As they are born at the age of the Great Recession all around the world when things went upside down, they are the unlucky ones to deal with the various problems related to finance for millennials. This generation, apart from shouldering a lot of financial burdens, is known for being the most tech-savvy generation that loves to pursue their passions and can go to any extent to fulfill their dreams. This article discusses some of the finance-related issues faced by the millennials: High debts for students’ loan This is one of the notorious and costly expenses related to finance for millennials. Post-recession, college fees have increased exponentially and become out-of-reach for many, compelling the millennials to take loans and pushing them toward high debts. The median cumulative amount of loan rose from $16,500 to $20,400 during the years 2000 to 2012. More savings to buy a home Along with education becoming expensive, they also have to save more if they wish to have a house of their own, which is leading to tough management of finance for millennials. Home prices are on the high post-recession, and the millennials literally have to pay for it. According to reports, millennials have to pay 39% more than what the previous generation had to pay for buying a house. This is the reason for the distinctly low record of homeownership among the millennials. In fact, in some cities, it could even take a long period of 10 years to save enough for paying a 20% down payment for buying a house. House rent has also increased by 46% with inflation adjusted, and the burden falls on the millennials. Management of finance for millennials has become quite a challenging task given these soaring expenses. Building wealth is not their cup of tea Saving has become difficult after providing for the basic needs of life like good education and a safe shelter, both of which have become extremely costly. This is making it difficult for them to build their wealth. In fact, they are categorized as the “lost generation” as far as wealth accumulation is concerned. More savings for retirement Inflation has lessened the value of money over the years, and 1 million dollars seems nothing as compared to what it was earlier. Despite their low earnings, the millennials need to save more for their retirement as a result of this. This generation is bogged down with the inflating cost of living, student loan debts, and having to save more for reaching life’s milestones. Finance for millennials is very tough. People need to work around and think of ways to tackle these problems to manage their finances, lead a stable life, and plan a financially sound future for their golden years after retirement.