About a decade out of school and still finding the going tough, economically speaking? You’ve got company. More than one in five Americans 24 to 34 struggle to make ends meet, saying they’re under “extreme financial stress” in a survey released by TD Bank, while two thirds say they wished they were better prepared for major financial events like going to college, having a child or buying a car.
Among older millennials, the top source of financial stress is covering bills, including mortgage and student loan payments, cited by 45% of respondents, according to the Cherry Hill, N.J.-based bank. While more than half – 55% – say they have a hard time “finding financial happiness,” a third say they’re “frustrated” by inadequate funds, whether because of limited incomes or an inability to save anything.
“Many factors can contribute to millennials’ financial stress,” says Nandita Bakhshi, who heads consumer banking for the company.
For one thing, getting a job is harder. Unemployment rates are higher for 25- to 34-year-olds, rising to 6.6% in July from 6.5% in June, according to U.S. Department of Labor statistics. That compares with a 6.2% average U.S. jobless rate. For younger millennials, those 20 to 24, the rate climbed to 11.3% from 10.5%. Meanwhile, the financial burden of earning a college degree continues to grow heavier, rising to about $33,000 on average for this year’s graduates, according to Edvisor, a website focused on college financing. So it should be no surprise that many young adults feel they’re under unrelenting financial pressure.
Yet most don’t turn to professionals for advice when confronting major life events – they reach out to family and friends instead. When evaluating college costs, 45% consulted with family, while 28% attended classes or seminars and a quarter talked with friends, according to the poll of 1,006 young Americans. Fewer than 15% either visited a bank website or spoke with a banker or financial adviser. Most – 67% – say they wished they’d been more financially proactive in preparing for the move.
Homebuyers differ
Contacting a bank only tops family or social connections when it involves decisions about buying a home. When seeking information about financial products, 65% of millennials speak with family and friends while fewer than a third consult with a banker, according to the survey. About a fifth say they didn’t need to take a formal seminar on the topic, while more than a quarter say they don’t have the time and more than a third, 37%, say the thought of taking a course or class on it never occurred to them.
“Millennials need to be proactive in finding education that fits their needs so they can be more prepared for the events they will experience throughout their lives,” says Bakhshi.
Apparently, that idea often only sinks in after the fact.
Broke consumer image via Shutterstock
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