Millennials Face Financial Struggle

The generation that came of age during the Great Recession is showing some distressing financial attitudes.

Apr 13, 2014 at 11:00AM

If you're part of the millennial generation, your financial life is probably no walk down easy street.

A new study by the FINRA Investor Education Foundation, "The Financial Capability of Young Adults -- A Generational View," reveals that millennials -- those 18 to 34 -- show concern about their debt, engage in problematic financial behaviors, and display low levels of financial literacy.

Survey results paint a troubling financial portrait of the millennial generation:

  • Almost half (46%) of millennials are concerned they have too much debt. This is slightly less but on par with Gen Xers (50%). But it's much higher than the 38% of baby boomers and 23% of respondents from the Silent Generation who feel they have too much debt.
  • Forty-three percent of millennials engaged in costly non-bank forms of borrowing in the past five years, like using pawn shops and payday lenders. By contrast, 21% of boomers and 8% of the Silent Generation used non-bank forms of borrowing.

Recent economic events play a role in the millennial generation's financial struggle. Many millennials began their adult lives in the midst of the worst economic downturn in generations, and this survey reveals just how difficult coming of age in the midst of the Great Recession has been for this generation of Americans.

Millennials and financial literacy
In addition, low levels of financial literacy hamper most millennials. Only 24% of millennials were able to answer four or five questions on a five-question financial literacy quiz correctly.

And among young millennials -- those 18 to 26 -- only 18% were able to answer four or five questions correctly.

Somewhat surprisingly, "The Financial Capability of Young Adults" also found that despite the higher financial strain that millennials face, they express levels of financial satisfaction that are on par with Gen Xers and boomers.

For more information about saving and investing, go to www.finra.org/investors.

FINRA is the largest independent regulator for all securities firms doing business in the United States. Our chief role is to protect investors by maintaining the fairness of the U.S. capital markets. FINRA does not endorse, sponsor, or guarantee, nor is it sponsored by, any advertisers on this site, and any dealings with those advertisers are solely between you and the advertisers.


link

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers