Are Young People Financially Doomed?

Younger Americans face a financial crisis. Their growing debt burden has far outpaced that of older generations, and it’s only getting worse. Generation Z is being hit the hardest, thanks to lower income and the rising cost of everything from food to housing. Bloomberg takes a look at the roots of this problem, and whether anything can be done.

00:00 - 00:54 Introduction to a growing debt problem
00:55 - 03:44 Income and inflation
03:45 - 05:42 Housing costs
05:43 - 07:48 Education and tuition costs
07:49 - 10:37 Doom spending
10:38 - 11:30 What does the future hold for young people?

Young Americans today face a serious debt crisis. And it’s making the American Dream seem more like an illusion.

Both Gen Zers and younger millennials were hit by a nasty one-two punch — the Covid-19 pandemic and then the worst inflation in decades — at critical points in their financial journeys. Now, those aged 18 to 29 are carrying $1.12 trillion of debt, according to the Federal Reserve Bank of New York. While that only makes up 6.3% of the total $17.8 trillion in US consumer debt, it’s still a huge burden to carry at an early point in their financial development.

Such an enormous debt burden has contributed to financial pessimism among young adults that’s changing how they work and spend money, key shifts that may have implications for not just their future finances, but also the broader US economy.

#Debt #Economy #Business
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[Azel]

Yearly tuition of 90k is insane... I can't even imagine paying that much for any degree

[CT-uekg]

In my opinion, student loans are massively missold. You are selling a huge loan to a young adult who doesnt understand the life long conseqeunces

[containedhurricane]

That's why young people don't want to have children

[nicolasbenson]

The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

[cryptoaj]

I just finished undergrad at 26 finally with very little debt thanks to the state of California. However the job market is BRUTAL

[MTFat]

As a Korean, I was truly surprised after watching this video because the situation In the U.S is so similar to what we are experiencing in Korea. I believe this issue is not specific to any one country but rather a common problem faced by developed nations.

[Kyla]

I'm an older millenial and will also never be able to buy a home. Things are atrocious

[icomefromcanadia]

Yes people have bad spending habits, but a critical problem is that it is WAY too easy for ppl to get credit and debt. Everywhere you go you're being solicited for a credit card or buy now pay later. Governments need to take some ownership for enabling bad behaviour and need to start restricting credit and BNPL. A person making less than $50K should not be able to have 10s of thousands of dollars in consumer debt by their mid 20s..or ever.

[markusmegatron]

universities should spend money for education and not for sports teams and stadiums

[PatrickRhyne-or]

Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 200k to a decent 632k in the space of a few months... I'm especially grateful to Harry’s Dent, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[pandafreak]

You know, I'm getting tired of being told about the issues. I've known about all of this for years. When am I going to start hearing about how it's going to get better?

[MichaelBabich]

Resume without 10 minutes of fluff and repetitive words: Cost of living increases faster than income adjusted for inflation.

[los]

2:38 Why are 15 year olds being lumped in with 24 year olds? In my state, a 15 year old can't eve work more than 3 hours on a school day. Their earnings and opportunities aren't comparable to 24 year olds.

[vibol]

I attended a local university and only ended up with 30k of debt after i got my degree. High schools need to educate their students better about choosing the correct university. 90k per year is insane.

[FradAnner]

I started my first job in 1985 and a few years later, I set the goal to have $1 million saved by the time I retired. I'm 3 years from retirement and hit that goal last year, but I now know I should have moved that goal post further out to $1.5 million or more.
I remember as a kid thinking millionaires were these people who lived like demi-gods among all us serfs. Now I am one and still don't feel any different from a serf.

[Peterl]

Student loans, in my opinion, are severely mismarketed. You are offering a large loan to a young adult who is unaware of the long-term effects.

[leakyabstraction]

I was thinking when reading the title that hey, I'm not in debt. But then I realized that I'm not even young anymore 😂

[Amberabove]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[Tangerinetaco]

5:48 - Tuition is $90, 000 a year at her school!?!?!! Go someplace else!! 😱

[Artistically.Autistic]

In the UK, student loan tax doesn't get deducted on the first 20k each year, allowing for a base living. The US version is quite sinister, it deductes the student loan tax on the gross amount. This leaves Americans in a hard place or worse destitute. That's outrageous.