Millennials Living Paycheck To Paycheck: Why? [Discussion]

(Photo Credit:JGI/Jamie Grill)

62% of millennials say they’re living paycheck to paycheck[CNBC]

Recent report came out about millennials more than ever are living paycheck to paycheck; Frankie and Tati question why, Sapphire says even with two jobs she’s having a hard time making ends meet but also guilty of eating out often

Here’s some stats from the CNBC article(see link above)

  • Almost two-thirds of millennials say they’re living paycheck to paycheck and only 38% feel financially stable, according to a new survey from Charles Schwab.
  • Millennials, more than any other generation surveyed by Schwab, feel the most insecure when it comes to their finances. That’s according to roughly 380 millennials (ages 23 to 38) surveyed for Schwab’s 2019 Modern Wealth report.
  • Yet millennials also say they spend an average of $478 a month on “nonessential” purchases, such as dining out, entertainment, luxury items and vacations. That’s less than the $587 Gen Xers report spending, but more than the $359 spent by baby boomers.
  • Terri Kallsen, Schwab’s executive vice president of investor services, tells CNBC “Spending is not the enemy that we might think that it is,”
  • The number of households with student loan debt doubled from 1998 to 2016, Pew Research Center found. The median amount of loan debt millennials carried was $19,000, significantly higher than Gen Xers’ balance of $12,800 at the same age.
  • Student loans are not the only kind of debt millennials hold. About 40% of millennials (defined here as those 20 to 35 years old) have credit card debt, according to a recent survey by LightStream, the online lending division of SunTrust Bank.
  • Millennials ages 25 to 34 had an average of $36,000 in debt last year, excluding home mortgages, according to Northwestern Mutual’s 2018 Planning & Progress Study.
  • Be really clear with yourself about what you want and what’s achievable. And be realistic, she says. Don’t expect yourself to go immediately from saving nothing to putting away $400 a month. If you can barely save $40, start by trying to save $40.

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