Editor: Vlad Rothstein | Tactical Investor
Millennial Money: Worst Savers In History
Millennials came of age during a time of transition in both the economy and in the landscape of higher education. During their lifetimes, college costs have risen significantly, with the net price of tuition, fees, and room and board at a public, four-year college increasing 68% since the 1999-2000 academic year.
The sheer amount borrowed annually for higher education has doubled since then too. Despite growing evidence that a college degree leads to higher incomes and career success, students’ perceptions of debt are deeply negative. In a recent poll, 57% of Millennials thought student debt was the largest source of consumer debt, even though student debt pales in comparison to mortgages. Forbes
Millennial Money: They owe more money than any other generation
This brain surgeons have racked up more debt than another generation in history. How’s that for a show stopper and most of them have degrees that are as useful as toilet paper
This is a 22% increase in just five years, which is more than any other generation in history.
However, there is some good news; these chaps seem to be saving more money too
While Gen Xers had acquired about $13,600 at around the same point in time, millennials have saved $15,500 in retirement accounts on average.
Millennials choosing wrong degrees and expensive schools
The focus should be on choosing a college you can afford and not focussing on brand name colleges.
“We’re in a different boat,” he said. “It’s a different time period. It feels like things are stacked up against me.” Seccombe already works at least 50 hours a week and has wondered about a weekend job. “It’s basically the choice between, ‘Am I going to raise my kids or not?’” he said.
One year at any four-year institution cost $26,593 during the 2016 to 2017 school year, according to the National Center for Education Statistics. Adjusting for inflation, the centre said the 1985-1986 cost to pay for that same year of schooling was $12,274. Market Watch
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