Guest Post by Catey Hill
They’ve been called spoiled and entitled, but millennials may not be in nearly the advantaged position many think.
Millennials may be the first generation ever to have lower lifetime earnings than their predecessors, which is “in contrast to the taken-for-granted promise that each generation will do better than the last,” according to a report released this week by the U.K.-based think tank Resolution Foundation.
Indeed, the typical millennial in the U.K., which the think tank defines as aged 15 to 35, earned about 8,000 pounds (the equivalent of around $10,600) less during their 20s than did those in Generation X.
And this data isn’t the first to show that the millennial generation may be worse off than their predecessors, at least in some ways. In the U.S., more millennials than older generations graduate with student loan debt, and they tend to have more of it.
That may help explain why a significantly higher percentage of American millennials have student loan debt than older generations, according to the Pew Research Center, a nonprofit think tank in Washington, D.C. (Of course, part of this is also that the older generations have had a longer time to pay down their debt.)
| More millennials have education debt than any other generation Percentage of each age group who has education debt |
|
| Millennials | 41% |
| Generation X | 26% |
| Baby boomers | 13% |
| Silent Generation | 3% |
| Source: Pew Research Center | |
Not only do millennials have lots of student loan debt, but they’re also not making much more than the previous generation. And that’s true even when you compare people ages 25 to 34 now (these are a subset of the millennial generation) vs. those we were ages 25-34 15 years ago with the same levels of education.
Millennials are also far less likely to own a home than previous generations — despite the fact that a number of surveys show that they want to, according to a 2014 survey of more than 1,000 U.S. adults aged 18 to 29 carried out by the Demand Institute, a New York-based nonprofit think tank jointly operated by the Conference Board and Nielsen.
They’re also more likely to live with their parents than some past generations, thanks in part to weak job prospects and high student loan payments. For the first time in 130 years, young adults are more likely to live with their parents than with their partners, Pew Research Center data released earlier this year shows.
Still, there are plenty of ways millennials are likely to be better off than previous generations. Generation X, are the most likely to have debt: 89% of Gen Xers have debt, compared with 86% of millennials. Gen Xers also have more total debt ($103,800 versus $46,000) according to data released last year from The Pew Charitable Trusts, a nonprofit organization in Philadelphia, Pa. And Gen Xers have more credit card debt — which, thanks to high interest rates is often one of the most costly kinds of debt — than millennials, defined by this group as those born between 1965 and 1980. Some 44% of Gen Xers have credit card debt and the median amount is $5,000 compared with 39% and $2,500 for millennials.
I graduated in 2001 from a state school in a red state out in flyover country. Saved the receipt from my last semester of college, approximately $1900 for full time ~ 22 credit hours. That included all the BS fees that are tacked on and never disclosed in the tuition estimates. While the institution was not top on any best-of lists the education was decent enough to get a job and lets be real, you learn everything that matters on-the-job anyway.
So, 15 years ago this Gen X’er was able to matriculate for less than $5k/year in tuition. On my summers off I busted my ass working 60/hr weeks in a crappy factory job. I literally caught product off a production line, packed it into boxes and called shipping when the boxes were full. With a $9.75 rate and lots of 1.5x OT I was able to squirrel away each summer to put myself through college. It was tight and I supplemented with small jobs during the school year and “donating” plasma twice a week for beer money. The only time I went to my folks for a handout was for a study abroad time in Europe. I’m grateful for their generosity but it was not necessary to graduate.
Fast forward, same University last time I checked was charging 4x the tuition. By that standard my old summer job should be going for about $40/hr. Unfortunately that job is long gone. Union voted to strike, company instead closed up the shop and moved it to labor friendly Florida. I’m sure the job still exists but the wage is probably $15/hr which would be about 3% annual raises.
The absurdity of tuition costs was present back in my time and why I picked the university I did. Today that isn’t even an option. Millennials have literally been priced out of a college education. They don’t let that stop them though – pile on the debt! Instead they should be protesting and not going. If an entire generation stood up and said “NO WAY” the colleges and universities would be forced to back peddle.
Sure, millennials have it bad, but instead of doing anything about it they just live in mom’s basement. I don’t have sympathy. Was it easier for me, maybe, but others had it easier than that so it’s a waste of time to argue that. You have to deal with the adversity you are handed. The younger generation is not. That’s not saying other recent generations have either, but all have the potential. Potential squandered.
That stuff’s all about money. That matters, but even if they were all rolling in dough, I already know they’re worse off than I have been. Know how? Because they’re all walking around staring at their smart phones and don’t even notice the beautiful clouds above their heads. When’s the last time they laid down on the grass and daydreamed? They’re bombarded by texts, e-mails, Snapchats, Instagrams, Facebook notices, etc. Also, they’re bombarded by messages that leave them incapable of ever being content. Denmark is said to be the happiest country, but some have said it’s better described as “content”. It’s small enough where there’s no pressure to move to a different part of the country where everything would ostensibly be perfect (and never is). Yosemite’s great, but if going there leaves you incapable of enjoying your own locale (assuming you don’t live in Yosemite), I pity you. It’s the equivalent of pining for a Range Rover when you could be happy to have a Ford Focus. Too many (not all) millennials actually compare their lives with the likes of Kanye West. The celebrity culture is making people insane. They watch TMZ and subconsciously think that someday they’ll be interviewed while walking to their Bentley. They get tattoos to show their individuality, when doing so does the opposite. They tweet out pictures of their dinner in the ultimate delusion of their own personal importance. I’m no fan of the Beach Boys, but as one of their songs says – “I guess I just wasn’t made for these times”.
Off topic, brighten up your day:
http://www.dailymail.co.uk/femail/article-3698897/Shoppers-hilarious-photos-WORST-supermarket-fails-sweep-web.html
Well i for one hope the Metros get fucked up the ass.
Things are bad and getting worse for them. And they know it.
Yet, theyd rather let someone else stick their nose out. Fuck emm.
I am an older millenial. Thankfully, I chose to sell my soul to the devil for free tuition. Thanks US Citizens! Anyway I have a bachelors from an excellent school, work my butt off for 34 gs a year, and live with my folks. We split the mortgage. Good work is tough to come by, though I very well could if I wished to sacrifice my morality. I like what I do. Anyway, I fail to see how it’s a bad thing to save money by not throwing it away on some corporate owned shithole apartment. Instead, I contribute to the value of a family owned property. At the end of the day I still have money for prepping, the range, and entertainment. I don’t really see the problem, on a personal level at any rate. The world’s going to shit, I may as well concentrate my resources amongst those I care about.
My son has a good job and is saving $2k per month. Given a price of a home of say $500k and 20% down, he needs $100k to get a home. That is 5 years, of heavy saving, and assumes he does not want to travel, etc. In some places you need more than that.
Kids want instant gratification. It is a horrible mindset.
They need to find good partners, save like mad for five to seven years, get themselves established, delay gratification.
I know a lot of young adults. I know of two with this mindset. Even good hard working kids blow their money on travel and cars and such. Saving is too hard.
Yep, the young are going to have it hard. They only know how to use debt and instant gratification.
Wonder who taught them that?
I know a lot of young adults. I know of two with this mindset. Even good hard working kids blow their money on travel and cars and such. Saving is too hard.
Yep, the young are going to have it hard. They only know how to use debt and instant gratification.
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Saving is too hard.. Rampant price inflation and a depression level economy have nothing to do with it. It must be the excessive use of debt and instant gratification for all of them.
With salaries declining, feminism, women’s rights to a job without qualifications, racism/anti-Christian society, a lack of good paying jobs (medicine is declining in pay as well), household income in the 50k range, and the decline in the value of a college degree (STEM included), most people are going to get screwed by the excessively high cost of living. If they are stupid and “use debt and instant gratification” for living expenses (necessities), it must be their problem and not the failing economy of the USSA.
Note: I am not referring to people who use debt for excessive consumption and materialism.
Wonder who taught them that?
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The Answer: The Boomers, a corrupt political system, and a corrupt financial system run by MBAs with IVY League degrees who have stripped the USA of its ability to produce and compete in a global economy.
Note: Not all Boomers are too blame. Many of them are wonderful hard working people with a Christian value system who passed on those values to their children. I’m referring to those who taught their kids to “how to use debt and instant gratification.”