Millennials still relying on parents’ money as debt becomes ‘overwhelming’

The economic collapse has hurt everyone unless you’re in Washington or on Wall Street. One particular group that seems to have the most troubles now and in the future is the millennial generation (those born between 1980 and 2000). Studies, articles and reports consistently cite how millennials can’t find work, have worthless degrees and are deeply in debt.

Two new surveys depict just how bad millennials and new college graduates have it: one study found that millennials are relying on their parents for money to cover their daily needs, while a second poll discovered how debt levels are “overwhelming.”

According to research from the University of Arizona, which tracked more than 1,000 students over a six-year period from when they entered college in 2007 and left in 2013, half of college graduates are depending on their parents or other family members for financial assistance.

Fewer than half of the millennials say they work full-time and close to half of those respondents say they still rely on their family for monetary support. Of course, it could be their fault as they have chosen idealistic career objectives rather than employment opportunities that meet their financial needs, the study authors say.

The least important factor for these millennials is working at a company that offers a 401(k) program.

With a paucity of funds and a lack of employment prospects, many are postponing marriage, having children and acquiring home, whether or not they rely on their family for each expense or some help for minor costs. Only less than one-third said they are entirely self-sufficient two years after college.

“These people started college during the boom period, then the market fell apart and they came out of college into a very different environment,” said Ted Beck, president of the National Endowment for Financial Education, in an interview with CNNMoney. “There’s been a deferral of those things we would traditionally think people would start to do at this age. People are not willing to make those commitments until they’re on more solid ground.”

Meanwhile, a Wells Fargo survey conducted by Harris Poll found that 40 percent of millennials have debt levels that are described as “overwhelming” and this is their biggest financial concern right now. In addition, more than half (56 percent) are living paycheck to paycheck.

Nearly half (47 percent) of the millennial survey participants are allocating at least 50 percent of their incomes to different kinds of debt. The categories included credit card debt (16 percent), mortgage debt (15 percent), student loan debt (12 percent), auto debt (nine percent) and medical debt (five percent).

However, what might be labeled as a quandary, 80 percent of them say the Great Recession taught them that they have to save now for any future unforeseen event, rainy day or their retirement needs.

“People have to closely examine what they are spending their money on and figure out the best way to comfortably manage debt and savings levels,” states Karen Wimbish, director of Retail Retirement at Wells Fargo, in a statement.

The youth unemployment rate stands at 13 percent.

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Comments

  1. Rosetta says:

    Men can’t find work because they are sexist towards women in schools and the workplace.

    Women need to be protected from sexual assault. How can we get the police to start working for us again?

    Endorse and support the campaign to allow the Toronto police force to use military gear and military training in dealing with sexist men on the street.

    Men who stare at the buttocks of white women are potential rapists, and lethal force by the police is justified if the male refuses to back off from the white woman.

    Stare rape should be criminalized and be met as a justification to place the male accused into the Sex Offenders Registry.

    Any complaint made by a female about a sexist male should be dealt with in accordance to the American version of Martial law and indefinite detention of sexist males.

    Is the white female race superior? This makes sense since white females have led the way in civilization during the last 10,000 or so years.

    White women in Toronto and the West lead the way in the intellectual jobs while white trash males, with their defective DNAs and cerebral cells, are unable to compete with females in school.

    Should Toronto society show pity to the less fortunate, to the men with inferior genes? I agree that they are classed as humans, most of the feminist movement in Canada acknowledges them as human form, even though they’re behind white women in in evolution.

    White women in Toronto, Canada are getting hotter. Bathing suits went from boring to blazing, and sexist males leer at the bikini lines of white women as if they are objects.

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