Younger Americans Feeling Financial Stress
Statistics show that Millennials are way behind previous generations when it comes to money matters. For many, their retirement could be at risk.
This financial insecurity can even affect their earning potential – 23 percent of Millennials reported feeling physically ill on a weekly or monthly basis due to anxiety about money. And when they are at work, two thirds (67 percent) say that financial stress is the reason that they cannot focus or be productive at work. That's more than twice the number of Baby Boomers who feel that way.
Of course, different age groups are in different places in their lives. Millennials are starting young families and buying homes, while Boomers and Gen-Xers are slowing down the pace or retired. Many younger generation Americans are also saddled with student debt which can be crippling when it comes to saving. You just don’t have enough left at the end of the month.
Millennials are also outspending older generations by about $2,300 a year. They spend more on gas in their vehicles than their older counterparts. They spend more on travel and even monthly cell phone service.
Eating out is another area where Millennials splash out. Older Americans typically spend $182 per month, while Millennials average $233 for dine-in and take-out meals every month.
Some concessions can be made for gas, as Millennials often buy homes further out in the suburbs. That results in a longer commute. But the outspending overall is a scary prospect, given the fact that Millennials don’t have the financial security that older generations have.
Getting a grip on your finances is essential if you want to feel secure. Stress increases the more debt you have and the more uncertain your financial situation is. As time goes by, you will need to be allocating money to savings, not just be servicing debts every month and slowly paying down interest.
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