Personal finance statistics

personal finance statistics of the millennials

The following personal finance statistics of the millennials were made by financial experts, if you are a millennial person you should read what they have to say to know where you stand and build your approach.

Millennials (my self included) as a generation which is a group of people who were born approximately between 1979 and 1996, these groups of people known for their hunger for success and making an impact with 711 finance.

Millennials and money “finance statistics”

In this topic, you will have a closer look at

  • Millennials spending habits statistics
  • Millennials personal finance statistics
  • Summary

Millennials spending habits statistics

Millennials often depicted by the old generation “generation x” as spending much of their money with comforts and conveniences, the question here is where do they spend? And how much? Are they richer or poorer than the generation x ?.

The recent NerdWallet study found that millennials spent 72% of their money with $52,874 annual average amount in 2018, they spend money on food, coffee, groceries, restaurants, clothes, their cellphones, and habits ..etc

Wait for it …they spend

  • $7,061 of their annual income on food with 47% of food budgets on eating out home, also 70% of millennials will spend a little extra to eat in the town’s restaurant.
  • $560 average amount on alcohol.
  • 69% of millennials buy clothes just because their friends did or for reasons beyond necessity with a $1,979 annual budget.
  • Millennials spent between 4% and 5% on utility with $3,183 on their annual income.
  • Nearly half of them have to use the credit card.
  • Approximately 71% of millennials are subscribed to streaming services and more than 11% are subscribed to more than 2 services.
  • They spend an average of $478 each month on entertainment, luxury, and vocations.

The bottom line is that millennials are really up to a big financial challenge to face the high cost of living, their irresponsible spending habits made them in the hot spot, and that what we will talk about in the next section of our topic.

What the stats say about millennial’s personal finance statistics ?…curious yet!

Scary Millennials personal finance statistics

Unlike Gen X and boomers experienced the millennial generation is drowning with problems, health problems, and financial problems, the truth is their laziness screwed them up.

Don’t make this discourage you.

I guess you are ready to see what are the millennials’ top scary personal finance statistics.

Low annual salary

If you check the generation x and baby boomers’ annual salaries with millennial’s annual salary you will find that the annual salary of the millennials is an estimated 20% than the average salary of previous generations at the same age.

Another U.S Census Bureau data found that the annual average amount of a millennial is $47,034 which equates to $905, so as you noticed between 2018 Nerdwallet data and 2019 U.S Census bureau data the millennials annual average amount dropped from $52,874 to $47,034.

As it seems this generation earns less than their parents did at their age, and their salary potential is shrinking.

Average net worth

Millennials are less wealthy than generation x and baby boomers according to The 2017 young invincible analysis data, this study also noted that they have half the net worth their parents did and not only that.

Back in 1989 the average net worth for young adults was $25,035, By 2013, it had dropped to $10,900 and it’s dropping, right now the millennials’ net worth is less than $8.000.

The year 2016- the Fed founded that millennials had a 40% lower average net worth, which indicates they are financially behind.

Tip; if you want to know your net worth sign up for Personal capital

Student loan-debt

A survey by Insider and morning class reported that about 50% have student loan debt which is hindering millennial’s ability to save.

The millennials indeed have a student debt crisis if you go and take a good look at the Federal Student loan portfolio you will find  $497.6 billion in outstanding student loan debt for about 15.1 million borrowers, equates to 33,000 dollars for each borrower.

In 2017 millennials had an average loan debt of $18,000, a year after the 2018 graduated class carried an average student loan debt of $29,800.

Is it worth attending college and having this huge weight of debt? well, that’s the millennial question.

Parent assistance

Why millennials take money from their parents?

As it seems millennials carry more debt than any generation before, financially they are struggling which is causing them to ask for financial help so it’s not surprising that parents are still helping their adult kids.

The facts .. 53% over 21 taking financial assistance, while 59% receive the same assistance but only a couple times a year. And 37% receiving monthly financial assistance just to cover expenses on regular things like their cellphones, gas, rent ..etc.

Not much saving

Until now the millennials personal finance statistics are alarming, will it change when it comes to their saving statistics… the stats say no.

The CNBC Make it surveyed 2.200 U.S adults (ages 22 to 37), in this survey 44% of millennials say that their emergency fund saving won’t last more than three months.

The good side ..even that 36% millennial’s reported they don’t have any saving set aside for unexpected emergencies, is 73% say they are saving and started much earlier than the previous generations.

Assuming, the medium millennials make $47,034 a year, if they save 5% of that amount over time and earned returns of about 7%, their savings will be over $96,000.

Debt

Compared to other generations just 13% of millennial credit cardholders are debt-free while 11% of GEN Xers and less than 29% of baby boomers without any debt.

Shocking debt data:

  • 70% have at least one other type of debt.
  • expert expectation says that millennials will be debt-free by 49.
  • 1 in 4 cardholders thinks they will die with debt.

Currently, according to the Q1-2019 millennials have an average of $2,906 per millennial in Puerto  Rico, considered the least amount of credit card debt of any state.

let us see about the other states, Mississippi scored an average credit card balance of $3,887, Wisconsin $3,899, Indiana $3,950. other related report found the average balance for younger millennials age 24 and less is $1,770 and $2,735 for older millennials.

Rent

Looks like millennials chosen to rent over to buy for two reasons, first..they are facing affordable housing and the second some of them say they like it this way renting is simple.

for some.. the annual salary can’t keep up with the rising of housing values and to afford one, they need at least to save 6,4 years of their annual salary.

with the credit card debt and loan debt and all the personal finance issues, they are facing, it’s reasonable to see why they chose to rent.

For the others..rents are affordable, the spend 35.7% of their paycheck incomes while their parents spend 38% on rents.

Summary 

The facts of the millennials’ finance statistics show’s a big scary challenge for them, wan we can never know what the future holds for them ( me included ), but they prove to be highly educated and the world can count on them.

Whether you’re young millennial or old, don’t let these stats discourage you and it’s never too late to build your finance strategy.

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