Here’s Why It’s Harder For Millennials To Build Wealth

By Susan Tompor
Detroit Free Press

WWR Article Summary (tl;dr) While many people are on a stronger financial footing after the economic recovery, many young people feel very much left behind, especially if they’re juggling low paying jobs with high levels of college debt.

Detroit Free Press

Siara Sellers, 28, owes almost $13,000 in student loans, money that has become a financial roadblock ever since she dropped out of community college.

Sellers, who lives in Detroit, has been working part time for the past eight months or so at the UPS warehouse in Livonia, making about $11 an hour. She left school in 2013 after her grades plummeted when her older, now-retired husband became sick.

Now, she says she cannot afford to put any money toward paying off her college loans because of her limited income.

Her federal loans are in deferment, which means she can temporarily stop making payments.

“I can’t afford it,” she said.

While many people are on a stronger financial footing after the economic recovery, many young people feel very much left behind, especially if they’re juggling low paying jobs with high levels of college debt.

Young adults with college degrees and student debt are stuck in a financial ditch and unable to build wealth as quickly as their parents did when they were younger, a study released in April by the Young Invincibles, a young adult advocacy group, says.

The problem? Millennials are bringing home significantly smaller paychecks, tend to be less likely to own a home and aren’t saving as much for retirement as young adults did in the late 1980s. They’re burdened with debt but not acquiring assets quickly.

Young adults with college degrees and student debt, for example, find themselves looking at a median, negative net wealth of $1,900 based on research by the Young Invincibles. Simply put, they owe more than they own.

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *