January 14, 2019
Don't Chase Millennial Assets: They Don't Have Any
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Millennials: The youngest M is 13; The oldest is 36. (BD 1982-2005), and they are head over heels in debt.
The average Millennial salary is $35,592.
Forbes examined M savings by age. From ages 13 to 31, it’s in the red. 31 is the first age Millennials show any savings: $2000. At 36, the number rises to nearly $20,000.
Sure these are averages, and some are higher, but some are lower. But still, there is nothing to suggest that this generation will represent the next “greatest transfer of wealth in the country. Their parents in the same boat, some will leave a legacy, some will not. Most will not. The impending retirement crisis facing those parents is a story for a different article.
Millennials represent 24% of the US
Don’t try to get them as clients; try to help them.
To an M (less than a “T”) they all sing the same tune. Their biggest financial issue for the under
1. Americans currently owe a combined $1.48 trillion on their student loans.
Student loans are now the largest form of consumer debt in the U.S. other than mortgages—exceeding car loans and credit card debt. It’s collectively
2. Current student debt varies widely by state and college.
The average graduates’ likelihood of graduating with debt in 2016 ranges from 43% to 77% depending on
3. The average student loan balance is around $34,000.
The average among Gen Xers—or those who are between 35 and 49 years old—is even higher at nearly $40,000. Young people between 18 and 20 owe less than $12,000 on average. That’s probably because they haven’t finished borrowing for school or don’t owe as much in interest yet.
4. The amount people owe varies widely. Around 7% of borrowers owe more than $100,000 – which equates out to an entire 1% of the country’s population.
5. People who live in Washington, D.C., have the highest average student loan balances. Maryland is second, Georgia third. North Dakota, South Dakota and Wyoming are the lowest.
6. More than 13% of Americans have at least one student loan balance on their credit report. On average, students have 4 loans each.
7. The number of borrowers defaulting on their student loans is at an all-time high. 1/6 of the people who have federal student debt (the equivalent of the entire population of 38 states) have stopped paying on student loans for 6 months or more.
THEY NEED HELP: They’re not helping themselves.
The percent of all high school graduates from the class of 2017 who did not fill out the Free Application for Federal Student Aid was 36%. It costs nothing to fill out the document. The total amount the class of 2017 left on the table by not completing the FAFSA: $2.3 billion.
So, how can you help? Here are seven suggestions to prevent it from happening to future generations.
And those debt-laden Millennials? Well, here are seven things you can do:
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