As more and more Millennials struggle with debts, from repaying their student loan to trying to keep up with
a constantly evolving tech society, it appears essential to understand the cause of their problems. Indeed it is
unfair to claim that an entire generation of adults has become careless to the point of debts. In reality, while it
would be foolish to pretend that Millennials are not in control of their financial situation, it is not as easy as it
sounds. Their debts might, indeed, be the result of the examples they grew up with, or simply the consequence
of keeping up with the modern lifestyle. What insecurity hides behind the millennial debt?
They haven’t seen their parents deal with finances
If you haven’t grown up observing how your parents managed the household budget, it’s likely that you are
a novice to money management. As childish as it sounds, it’s easy to understand how someone who has never
had to work with a budget can accidentally spend their first paycheck without taking into account their financial
obligations. It takes time to learn to set up a budget and define the rightful limits for your expenditure.
When lack of experience meets lack of knowledge – depending on your type of studies, you may never hear about
the importance of budget management –, is it still fair to blame Millennials for their debts?
The social pressure is huge
According to Harris Interactive, 68% of social media users are tempted into purchasing an item following a recommendation posted
by their contacts. Growing up in a digital world, Millennials define their worth through
social media likes, responding to popular posts by reproducing them. It doesn’t take long to see how social
media appreciation can lead to excessive expenses and bad credit score. From a financial perspective,
personal loans for bad credit are a handy solution. But Millennials need to detach themselves from social media pressure.
Everything is a lot more expensive
The most obvious reason behind the millennial debt is that everything is more expensive today than it was. Buying
a home in the 1940s was around $2,900. In 2000, the median home was over $119,000. Education too is a
significant weight on your finances. In 19712, Harvard University demanded $2,600 in tuition. Nowadays, it’s
more than $43,000. Millennials spend more because, ultimately, it costs more to build the same living standards.
There are more financial scams with new technology
With the apparition of IT in your everyday life, Millennials are facing more scams than the previous generations.
While everybody has heard about the Nigerian Prince’s claim – a scam that has been running for over 10 years
now – young adults are exposed to cyber criminals on a daily basis. Whether they’re shopping online, checking
their emails or simply surfing their social media networks, the risks are everywhere. Phishing, one of the preferred
forms of fraud, trick users into sharing their credentials. But fake greeting e-cards and romantic scams are many
new victims every day.
In short, poor financial decisions may be the result of a variety of factors. From impossible social
pressure to cyber criminality, Millennials have a hard time getting ahead of their finances.