millennials and finance

Millennials and finance

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Joey Rigor Kontak Mobile Apps May 27, 2016

There are 80 million

millennials in America alone and they represent about a

fourth of the entire population, with $200 billion

in annual buying power.

Millennials, the generation born between 1980 and 1995, are better

educated, tech-savvy and more economically active.

But they confront greater difficulties.

“Millennials owe a lot.

But know too little about finance.”

“The Global Financial Literacy Excellence Center(GFLEC) at the George Washington University conducted a research with the support of PwC, Global tax and consulting

outfit PricewaterhouseCooper.

This study examines the personal finances of Millennials using data from the 2012 National Financial Capability

Study (NFCS).”

“The NFCS is a survey that benchmarks Americans’ financial capability and

financial planning.

The analysis was based from 5,500 respondents aged 23-35. The data is

indicative not only of Millennials’ financial characteristics but also of the factors that

threaten their economic aspirations and security.”

“So how do Millennials

approach personal finance?”

Only 24% has basic financial knowledge.

8% demonstrated high financial literacy.

Millennials have inadequate financial

knowledge.1

52% are not satisfied with their financial situation.

Aren’t happy with their current

financial situation.2

54% are concerned about their ability to repay.

They worry about student loans.3

Among college-educated Millennials, 80% have at least one long-term debt.

A lot of them has long-term debt.4

30% are overdrawing their checking accounts.

53% has a credit card balance in the past year.

They are financially fragile.5

42% used an AFS such as payday loans, pawnshops, auto title loans, tax refund

advances and rent-to-own products.

Are heavy users of Alternative Financial

Services (AFS).6

More than 80% took loans or hardship withdrawals in the past year.

They sacrifice retirement accounts.7

Only 12% sought help on debt management.

Only 27% sought help on saving & retirement.

And they don’t seek professional financial

help.8

“If they don’t ask for help, their

financial problems will worsen in the

future.”

Millennials are the next generation that will shape the

economy but the financial platform where they stand today

is at best unstable and even troubling.

The research has shown their financial

irresponsibility is threatening their own

future as well.

“So how can we help them

overcome this problem.”

The conclusion of the study suggested expanded access to

financial education with a forward-looking approach to

financial literacy.

Starting in schools.

“By giving students the tools to help them succeed financially, we

can build a stronger and more economically resilient society.”

Shannon Schuyler, US Corporate Responsibility Leader; Chief Purpose

Officer, PwC, President, PwC Charitable Foundation, Inc.

But this recommendation limited its focus only to the future

generations and not the current population of Millennials.

“So what will happen to the

Millennials now?”

The clock is ticking.

And they are still incurring more

debt.

AboutMe

As a tech blogger, I have always been following new trends and how technology

can be used to harness its potential or provide solutions to counter its problems.

Joey Rigor, CEO Kontak Mobile Apps. kontakios.com