Millennials are stuck between having a financially responsible mindset and having the resources and discipline to pull off long-term results, finds a USA TODAY/Bank of America survey on Millennial money habits.
The survey of 1,001 people ages 18-34 reveals a disconnect between the way Millennials think about their finances and what they’re actually able to achieve. They say they have good financial habits, though the majority still worry about their financial situations. They think they’ll be at least as well off, if not more, than their parents — yet more than a third still receive financial support from family. They say they’re good at living within their means, but many are living paycheck to paycheck. And while this age group has prioritized reducing debt, many are unable to put away emergency savings simultaneously.
While the job market is slowly improving, wages have remained relatively stagnant, and Millennials still have several significant financial burdens to contend with, including rising student loan debt and rising rent prices. Class of 2013 grads have an average debt load of $28,400, according to The Project on Student Debt. Then there’s the unnecessary expenses Millennials have deemed necessary, like traveling and eating out at nice restaurants.
When asked what represents having financially “made it,” 70% of Millennials said that being able to afford anything, like travel and treating friends and family to things, was their definition of success; 40% said it was having a career that does good for others; while just 24% said it was rising to the top of their profession; and 15% said it was making a lot more money than their parents made.
Source: USA Today | Hadley Malcolm