Millennials aren’t savers, whether because it’s a personal choice or it’s an impossible method for them due to student loan debt, a paucity of jobs and a rising standard of living. A new poll essentially suggests that millennials are doomed, at least for the near future.
According to a new Moody’s Analytics survey that was obtained by the Wall Street Journal, the savings rate for millennials – adults who are under the age of 35 – maintain a savings rate of negative two percent, the only demographic to have such a rate.
This means that millennials are spending more than they are taking in, and have nothing to show for it.
Meanwhile, older adults have better savings rates: adults between 35 and 44 have a three percent savings rate, those between 45 and 54 maintain a six percent savings rate and seniors 55 and older set aside an astonishing 13 percent.
Moody’s Chief Economist Mark Zandi, co-author of the report, told the newspaper that this is a short-term boom for the economy, but as time goes by, this will be detrimental to long-term economic growth because millennials will be unable to consume due to the fact they’ll have less money to purchase goods and services.
For the last few years, there have been an influx of articles, data and reports highlighting just how financially vulnerable millennials are, plus their attitude about their economic future is rather bleak as many of them have already given up on the concept of retirement.
With student loan debt surpassing $1 trillion, millennials sharing a great portion of overall consumer debt and this generation’s inability to accumulate assets, those born between 1980 and the early 1990s could very well be the lost generation. No jobs, no money, no hope.
There is one thing that millennials are contributing to the economy, according to USA Today: saving malls. Here is what the newspaper wrote last week:
“But an interesting part of those habits, it turns out, is still going to the store. Indeed, here’s the rub: most of the wisdom today has been that millennials will mean the end of brick-and-mortar stores. This trend suggests the opposite, that millennials will herald in a new experience-driven mall or shopping experience.”
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