I am a millennial (ages 16 to 35), and I struggle with money. Apparently, I’m not the only one. According to a new report, my generation is likely going to be the first in history that doesn’t earn more than the previous generation.
The report, “Stagnation Generation,” claims:
“A typical millennial has actually earned £8,000 ($10,587) less during their twenties than those in the preceding generation – generation X.”
An average 27-year-old worker today is earning the same amount that a 27-year-old was earning 25 years ago.
The financial crisis of 2008 may have contributed to the problem, but that’s not the only cause. Since millennials are earning less, they are also more likely to be in debt. Also, fewer millennials are buying houses.
From the report:
“Renewing the intergenerational contract is a shared challenge for our times: For all the talk of generational war, people whatever their age share concerns for the fate of the next generation – for their children and grandchildren. We’ve seen big increases in support for house building right across the generations, with more than half of baby boomers now supporting more house building in their local area.”
This report is from the United Kingdom (U.K.), but the United States isn’t doing much better. Here, the median income for millennials can be different depending on the state.
In my state, Alabama, the average salary of millennials is in the $20,000 per year range. Half of college graduates are not even working in their field right now. People are taking any job they can get.
This should be expected based on age, but the problem is that many millennials are stuck in dead end jobs. Many of us are stuck living at home, unfortunately.
Approximately, 32 percent of millennials are stuck living with their parents. That number is very slowly going down. We are saddled with huge student loans and having trouble getting jobs in our fields.
When will politicians address this issue?
Here is a news story about this issue: