Millennials Are About To Go Broke

Here is why Millennial Net Worth has been declining - Enjoy! Add me on Instagram: GPStephan

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Millennial Net Worth:
CNBC reports that, in 1989, when baby boomers were around the same age as millennials are today…they controlled 21% of the nations wealth, which is almost 5X HIGHER than Millennials own, today - here's why:

1. Student Loan Debt
On average, the cost of a college education has risen 65% in the last 10 years. Alongside that… wage growth - on average - has only gone up about 26% in the last 10 years…And to make matters worse…on average, millennials who graduate with a student loan have a debt of more than $30,000. In 1970, only 16% of people had a college degree or higher, and today, nearly 40% of millennials in the workforce have a bachelors degree. This means that, back then, not only was college CONSIDERABLY less expensive than it is today, but it was FAR more exclusive and demanded a much higher salary. 

2. Millennials are not investing.
In fact, it was found that 43% of millennials are just straight up NOT investing anything…and almost 50% of them are WAITING to invest until they earn more money. Unfortunately, it appears that the main issue behind all of this…is simply just a lack of education, and the proper guidance in terms of HOW TO invest - which can be incredibly simple.

3. Lack of Home Ownership
Millennials have been 8% LESS LIKELY to own real estate than previous generations for several reasons: first, being home prices. It’s said that millennials are paying a median price of $328,000 for a home…while baby boomers only had to spend $216,000…adjusted for inflation….in 1989. Because of that, nearly one fifth of millennials said they planned to rent forever…and of the millennials who DO plan to buy a home…63% have no money saved up for a down payment.

Second, student loan debt. The cost of tuition is up…wages are down…and, in turn, even if you DO have a job - you’re making less, comparatively, to previous generations. Even though there CAN be benefits of getting a college degree…and it CAN be a pre-requisite for securing a job…it’s certainly becoming a lot more common, and therefore, less impactful towards getting a boost in salary.

Third, millennials are making less money. 
Surprisingly, 62% of millennials are living paycheck to paycheck…and, overall..they’re making 20% LESS than baby boomers did at the same age. So, put all of that together…and you have a combination of factors that all make home ownership less possible, which - in turn - lowers the homeownership rate - and then, in turn - means millennials own less wealth.

Fourth, lower millennial net worth.
This study found that the typical Baby Boomers had about $113,000 — in today’s dollars — in wealth in 1989, when they were in their early 40s. On the other hand, recently….older millennials had a net worth of just $91,000 in 2019. In fact, if we just look at AVERAGES across the board, overall….the AVERAGE net worth of millennials is just $8000…

It’s also INCREDIBLY important to realize that, at the end of the day - all the income in the world won’t help if you don’t consistently SAVE AND INVEST, so that way, you can participate in the markets going up in value over time.

My ENTIRE Camera and Recording Equipment:

[Xperim]

You can't go broke when you never had money in the first place.

[michaelisgaming]

"Millennials are about to go broke" Jokes on you, I was already broke to begin with 😎

[jmars]

Jobs: Bachelor’s degree required
Pay: $15 an hour. 😒

[handsomebarber]

“It’s not being taught in schools but at least we have YouTube”
The sad state of affairs in America

[pawel]

It’s almost as if wages have remained stagnant while cost of living and inflation have continuously grown :)

[orly]

My Dad could pay rent for $300, and buy a car for $500 ....

That's the difference.

[moonmilk]

Entry level positions only require 10 years of experience, and a masters degree, but pay like an internship! Who wouldn't want that? I know I would! Sign me up!

[iamthewalrus.]

“Millennials afraid to lose money”

*wallstreetbets has entered the chat*

[ryanbarker]

"The job market rewards talent, but it doesn't reward loyalty"
This is so true yet a huge problem because there are so many companies out there flat out lying to young professionals. Big business gaslights and stalls talent like nothing else.

[myfinancialclimb]

I've got to say that at age 27, I discovered just how bad people were with money...including myself. It's taken a long fight, but I can happily say that as a millennial (now 32), I feel ahead of the curve with a net worth of $97, 969.92, of which $88, 485.65 are investments. Rewind just two and a half years and my net worth was only $6, 861.36. I've come a long way, and I feel like I'm just starting to catch momentum. I say all this to say that if you're currently struggling with money, you can do this. Create a plan, get and STAY disciplined and just put in the work. It will pay off in the end. A small sacrifice for a brighter future for us all.

[hey]

Sometimes I forget that not everyone my age watches investing and personal finance channels on Youtube.. THEY SHOULD BE!

[spadassin]

As a millenial I would say my biggest mistake undoubtedly was being born a millenial

[miriamstrauss]

Also in prior generations, the interest rate was so high that you could just keep money in a savings account and gain crazy interest on your savings without even investing it. In 1970, the interest rate was 20%! My father got 14% interest on his savings account and never invested any money in stocks his whole life!

[cristalcruzzin]

Sometimes I feel a little down but it’s taken me so freaking long to get my degree. But I’ve only been taking as many classes as I can afford without going into debt. I see the light at the end of the tunnel though, next year at the latest I should be able to graduate with zero student loan debt! If by then I can also pay off my car and I’ll be 100% debt-free by the end of next year

[LifeLessonsWithLuis]

3:44 mark. It sounds like he's saying 90 f***ing percent

[jiggyjungs]

Can we just take a moment to appreciate the knowledge this man brings us !? THANKYOU GRAHAM

[malikzz]

Moral of the story
The American dream is becoming a nightmare .

[christophergutierrez]

I really started to turn my life around watching you, Andrei and Kevin! You guys are heroes.

[emily]

"none of this is taught in schools but at least we have YouTube" so fucking true.

[davidhensey]

I know quite a few college graduates who don’t have a spouse still living with their parents. They make good money, but they have tons of debt, rent has increased significantly, and housing has went up also. In addition most have terrible money management skills.

I try to advise my younger siblings if they go to college in state due to their grades their bachelor would be free and I could afford to pay the difference if they get a Masters. But the rest of my family members encourage going to the most prestigious school they can get into and tell them don’t worry about the cost.

Personal finance should be a required class 9th-12th grade, It would help our country out.