How Can Millennials Be Financially Responsible and Lean Towards Socialism at the Same Time?
The Millennial Generation offers up a great sense of irony. Let’s start with one of the two sides of irony.
I have said many times on the radio and cited many surveys and sources that the Millennial generation is the most financially responsible generation of all generations around. For one example, they are the highest percentage savers. Sure they are burdened with student loan debt. However, credit card debt doesn’t consume them.
According to a new study by Sallie Mae and Ipsos, “Majoring in Money: How Americans College Students Manage Their Finances,” the reality is most American college students are handling their finances carefully and conscientiously. Now students that are in college make up the last remaining years of the millennial generation before generation Z takes over.
Now you might look at some of these statistics and think that they aren’t that impressive. The reality is that there better than the national averages and show a drastic improvement in trend.
- More than three fourths (77 percent) of college students pay bills on time.
- Six in ten (60 percent) never spend more money than they have available.
- More than half (55 percent) save at least some money every month and 24 percent report having an emergency fund.
- More than half – 56 percent – have at least one credit card and 63 percent pay the balance in full each month.
When I was in school, my friends and I were collecting credit cards and using them to buy things that we wanted. Further, the idea of savings and emergency funds in college was the furthest thing from our minds.
Now for the bad news and the other side of the irony. The ironic twist comes from a latest USA today poll. This poll cited that 58% of millennials stated that socialism was the most compassionate political system compared to 33% for capitalism.
That is troubling generational influence and change. Just think about it…..Capitalism dies a slow death as baby boomers die off and millennials influence future generations concerning socialism. After all, they have to blame someone for all of the debt and capitalism (at least in appearance) was in charge.
When in stark reality it isn’t the Republicans or Democrats or capitalism that is at fault. It is cronyism and every politician ever elected to office that irresponsibly spent money.
This is a generation that will never witness first-hand the good that has come from capitalism. They only see the bad that comes from cronyism and call it capitalism.
A generational shift in trend towards financial responsibility is a great thing! However, how much of it gets canceled out by a generational shift to socialism? Headed that way, I guess we would at least want financially responsible citizens. Maybe less strain on a socialistic government?
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Bob Brooks is host of The Prudent Money Radio Show, Financial Advisor, and active money manager that consults and helps people plan.