Millennials, often characterized as the generation facing unique economic challenges, are grappling with significant financial stress, primarily stemming from debt-related burdens.
Insights from Insider and Morning Consult Survey
A recent survey conducted by Insider and Morning Consult sheds light on the financial struggles faced by millennials, particularly concerning indebtedness. With 2,096 participants, including over 670 millennials aged between 23 and 38 in 2019, the survey delved into various aspects of financial health, debt, and income, forming the basis of the ongoing series, “The State of Our Money.”
Debt-Related Stressors Among Millennials
The survey findings reveal that millennials with debts, such as mortgages, car loans, credit card balances, and undergraduate student loans, are experiencing heightened levels of stress compared to other generations. Notably, approximately 49.7% of millennial respondents with mortgages and 50.7% with car loans report experiencing significant stress associated with these obligations.
However, the most profound source of stress for millennials emerges from credit card balances and undergraduate student loans. Over 68% of millennials carrying credit card debt and approximately 72% burdened with undergraduate student loans express notable stress levels, surpassing the overall respondents’ averages.
Shifting Views on Financial Success
The survey underscores a notable shift in millennials’ perceptions of financial success, with the majority prioritizing debt freedom over traditional markers of wealth. Contrary to conventional notions of prosperity, where being affluent might signify financial achievement, millennials predominantly associate success with being debt-free.
A Merrill Lynch Wealth Management report echoes these sentiments, revealing that a mere 19% of millennials consider financial success synonymous with wealth accumulation. Instead, a significant majority—60%—regard it as the absence of debt, underscoring the pervasive desire for financial liberation among young adults.
Burgeoning Debt Landscape
Illustrating the magnitude of the issue, data from the Survey of Consumer Finances cited in the report indicates that 81% of early-adult households collectively carry nearly $2 trillion in debt. While mortgages and car loans contribute to this figure, the bulk comprises student loan and credit card debts, posing substantial challenges to millennials striving for financial stability.
In essence, the survey findings illuminate the profound impact of debt on millennials’ financial well-being, emphasizing the pressing need for proactive measures to alleviate debt-related stress and foster greater economic resilience among this generation.
Leave a Reply