A recent study from www.moneyunder30.com shows some interesting results in how the great recession might have shaped their situation. The study survived now 21 -29 year olds. During the Great Recession/Financial Crisis that age range would have been 15 – 23. There have been some positive and then not so positive effects.
Positive Impact- Savings
62% of Americans on average are saving anything for retirement. 86% of Millennial ‘s are saving. Millennials’ saw how the Great Recession exposed the negative impact of poor spending/saving habits of their parents.
Amount of money saved on average for retirement in America is $35,000. The average amount of money saved by Millennials is $7,453, Considering the young age group versus a broad band of ages, I would say that is a better than the average of all ages.
The average family savings account in America has a balance of $3,800. The average savings account balance for the Millennials is almost twice that at $6,713. Once again, this generation saw the negative impact that limited liquid savings had on their parents.
The Average Credit Card Debt in America is $2,200. The average credit card debt for the Millennials is a little higher at $3,718. However, that amount is down from a high of $3,993 in 2014. Millennials have had to rely on credit a little more due to the Great Recession. However, they are showing responsibility in the fact it is decreasing rather than increasing.
47% of Millennials have an average student loan debt of $36,584 which is up from 2014. Leading up to the Great Recession, there was a good percentage of the millennial generation that were near college. Many families lost a good percentage of money saved for college during the great Recession. Then the Government stepped and socialized the college student loan business taking it from private industry and making it mostly government run. Of course, as a result, borrowing money became easy to do.
Negative Impact- Employment
32% of Millennials have a job but it’s not related to their desired career or field of study. 25% work more than job to get by. Another negative from the great Recession is the employment markets which have improved but far from where they were at one time. The financial crisis completely changed employment in America at a time when college graduates would be looking for a job.
All in all, the millennials have had to endure a much tougher financial situation because of the Great Recession. However, as far as financial habits go, they are in better shape than the average American. Employment markets will get better and good habits will ensure that debt gets paid off. Bad habits will sabotage your financial wellbeing for a lifetime.