Half of Millennials Are Delusional About Money

[dgtatu01]

On one hand, it should be . . . on the other, how? They have been told they do not have to be responsible. Obama said to them a legitimate means to free college education was the option of defaulting on student loans. This world we live in now genuinely includes persons, real, living educated humans, Americans, who believe there is something horrifying, evil, within that man who will expect another man to pay for his own debts.

You really think that’s a new thing? There is nothing new under the sun. Millennials have just as many responsible young men and women who work hard and have financial responsibility as any other generation does and just like every other generation they have their share of deadbeats and losers. I think it’s simple minded and unhelpful to act like their entire generation is worthless, because they aren’t.

Reading these threads I am starting to think that Gen X and the Baby Boomers might have a larger than normal share of crotchety old farts.

 

[kev69]

On one hand, it should be . . . on the other, how? They have been told they do not have to be responsible. Obama said to them a legitimate means to free college education was the option of defaulting on student loans. This world we live in now genuinely includes persons, real, living educated humans, Americans, who believe there is something horrifying, evil, within that man who will expect another man to pay for his own debts.

Spot on.

 

[Mashburned]

Millennials have just as many responsible young men and women who work hard and have financial responsibility as any other generation does and just like every other generation they have their share of deadbeats and losers

That’s insanely false. Pick up a history book.

 

[Elbridge]

Social Security started in 1935. I’d say most people throughout history were bad with money and didn’t really save.

 

[BankerCat12]

But how can they save? Given their low wages,the cost of living, and the amount of student loans they have?

I think that most millennial are actually being smarter with their money. Business websites are putting out “millenials killed the ______ industry” articles on a daily basis.

How are they being smarter?

 

[gobigblue812]

Being a millionaire isn't what it used to be and with inflation it will mean even less. For someone who is currently say 22 yrs old just out of college and earning $40K, and sees a 3% salary bump each year... By the time they are 65 yrs old they are earning $142,580.
If starting at 31 yrs old they save 10% and do so until they are 65 they will hit millionaire status assuming a 7% ROI.

However... if they start saving 5% at 22 and never increase that rate they surpass $1 million at 60 yrs old and have $1.55 million at age 65.

My employer matches the first 5% dollar for dollar so you're crazy not to save a minimum of 5%...but I know of some who don't. A gal on my team who just turned 40 and earning $100K has confessed to me that she doesn't participate in the 401K and doesn't have an IRA...but she drives a nice car...leased of course. When I reminded her that she is just pissing away a free $5K/yr she just shrugged her shoulders.

I've recommended to all of my kids to save at a minimum whatever their employer will match and then sign up to automatically bump their savings 1%/year until they at least reach 15%. Since they all asked me to help them decide what to do with their 401K I know that they were all setup to do so...if they change it, that's on them.

Maybe she's hoping to retire on social security...hahahahaha

 

[Elbridge]

Most stunning nonsense I've ever read on any subject related to individual fiscal responsibility. That's saying a lot coming from me, and I don't promote my own qualifications . . . EVER.

How so?

 

[WildcatFan1982]

I'd save money if I ever had any.

 

[ukalumni00]

Worst statement is when parents say I worked very hard so my children could live a much better life. A lot of that is true, but its not doing your kids any good when you give them almost everything they want, do not teach them the value of a dollar, do not make them get jobs to toughen them up, etc. The greatest generation started this whole mess by raising the Baby Boomers who by and large have been a financial disaster to this country with entitlements, massive personal debt, and filled our government over the years and have accumulated a debt nobody even 25 years ago thought was possible. Baby Boomers raised my generation (Generation X) who spoiled these Millennials and its just an avalanche of irresponsibility that has been taught for many many years to get people and this country into the financial mess we are in now.

Glad I was dirt poor. Parents told me if you want something go get a job and buy it. Want to go to college, get a Scholarship or Pell Grant and work to pay for your college. Hated it at the time and did not have a very good childhood, but by gosh is toughened me up and taught me how to manage money properly. Lots of the "rich kids" I grew up with peaked in HS. Best friend was as spoiled as they came. Now, he can't keep a job and lives with his Mom.

 

[DSmith21]

How are they being smarter?

The only way that they are being "smarter" with their money is by living rent free off their parents and foregoing having children. Those are some major cost savings but there are major life sacrifices associated.

 

[UK_Norm]

How are they being smarter?

By not spending their money at those places, thus “killing” one industry after another.

 

[cricket3]

Another fun fact: Half of millennials don't realize they're actually a millennial themselves when they complain about millennials online.

Older millennials are in their mid-30's now.

 

[dgtatu01]

I want someone to present me evidence that the average person from any generation was more fiscally responsible than another generation. For all of human history (20,000 years or so) the majority of people alive at any time have saved next to nothing and lived day to day.

 

[buckethead1978]

Guarantee Dsmith is broke AF

 

[DSmith21]

I want someone to present me evidence that the average person from any generation was more fiscally responsible than another generation. For all of human history (20,000 years or so) the majority of people alive at any time have saved next to nothing and lived day to day.

Millennials are not saving while the older generations are. 80% of millennials have less than $10,000 in savings (from the original posted article). Student debt is one of the reasons. No other generation has been this much in debt coming out of college.

 

[DSmith21]

Guarantee Dsmith is broke AF

You would be wrong. I saved immediately and aggressively when I started my career 25 years ago.

 

[fuzz77]

Worst statement is when parents say I worked very hard so my children could live a much better life. A lot of that is true, but its not doing your kids any good when you give them almost everything they want, do not teach them the value of a dollar, do not make them get jobs to toughen them up, etc. The greatest generation started this whole mess by raising the Baby Boomers who by and large have been a financial disaster to this country with entitlements, massive personal debt, and filled our government over the years and have accumulated a debt nobody even 25 years ago thought was possible. Baby Boomers raised my generation (Generation X) who spoiled these Millennials and its just an avalanche of irresponsibility that has been taught for many many years to get people and this country into the financial mess we are in now.

Glad I was dirt poor. Parents told me if you want something go get a job and buy it. Want to go to college, get a Scholarship or Pell Grant and work to pay for your college. Hated it at the time and did not have a very good childhood, but by gosh is toughened me up and taught me how to manage money properly. Lots of the "rich kids" I grew up with peaked in HS. Best friend was as spoiled as they came. Now, he can't keep a job and lives with his Mom.

Yet still today the greatest indicator of future success/failure for any child is the success and/or failure of the parents. Most kids raised dirt poor, remain dirt poor. That was true 100 years ago and is true today.

Of course it isn't a perfect indicator but your observations are clearly antidotal. My parents were from the greatest generation and as children they experienced the Great Depression. They also fought WWII and sacrificed greatly. They would be the first to admit that they spoiled their children and gave them everything they could. They pulled every string they could pull to keep my brother out of Vietnam as my dad said he sacrificed enough during WWII for his family. They encouraged us to become educated, to travel the world all on their dime and to serve our communities so that we would understand how fortunate were. When we screwed up they were there to help us back on our feet. They set a hell of an example for me and my siblings.

I'm certainly glad that you beat the odds.

I'd disagree with the statement that the greatest generation started "this whole mess". They believed in shared sacrifice and sacrifice for the common good. They poured everything into WWII in terms of their manpower and acceptance of rationing to help the war effort and then they were responsible by enacting tax rates that responsibly paid down the debt that had been incurred to fight that war. They set the right example.



We were doing pretty well debt wise until some people calling themselves "Conservatives" came along and started selling the snake oil of trickle-down economics. Lowering taxes and exploding the national debt.

They have been told they do not have to be responsible. Obama said to them a legitimate means to free college education was the option of defaulting on student loans. This world we live in now genuinely includes persons, real, living educated humans, Americans, who believe there is something horrifying, evil, within that man who will expect another man to pay for his own debts.

Given that you must have paid 240 payments (20 years) on student loans to qualify for forgiveness...hardly makes college "free". Other programs exist to forgive some student debt if you commit to some specified community service jobs like the military, teach in at-need schools, law enforcement, doctors/nurses that commit to serve underserved areas... ain't none of that getting off free or even cheap.

 

[BigBlueDave]

We were doing pretty well debt wise until some people calling themselves "Conservatives" came along and started selling the snake oil of trickle-down economics. Lowering taxes and exploding the national debt.

Fuzz was doing well debt wise until he decided to not pay Brady.

So under Reagan, federal revenues rose from $600,000,000,000 to just under $1 trillion from 1981 to 1988.

How can that be when he cut taxes?

There was never a decline in revenues in Reagan's eight years.

It sounds like a debt management/living beyond your means problem.

 

[Pawpaw42]

My biggest gripe is how these young kids need the best of everything and complain about the older generation making it as they can't afford a home.
One example being, miss 21 has a baby (insert made up name to be different and cool). Next comes baby's six month birthday and instead of buying cake mix and baking the cake herself for under 10 bucks, searches for the best cake maker in the land, rents inflatables, and spends a couple more hundred on food and presents for the party thinking that the kid will remember all of this and posts several hundred pictures on social media so everyone can say what a good parent she is.

 

[wildcatsboston1984]

I try to be open minded about them also. I think that’s a good trait. But the ones I’ve hired the last few years, more and more, seem to think that a deadline is more of a suggestion, that advice is just noise, and that missing work is normal. I can’t imagine previous generations were like this. Maybe they were.

They were based on what my mom and dad have said about their coworkers for most of their life. Shitty work ethic has existed for forever.

Sounds like you need to reevaluate your hiring process because it's producing terrible results. Either that or the industry you are in is largely unattractive to quality prospective employees.

I work in a college athletic department and have to depend on student employees extensively to get all the work done at games. I have near zero problems hiring people that have a good enough work ethic to get the job done. In 12 years in college athletics, I've only had to fire one person, and that's just because one of our coaches absolutely hated the student for reasons no one ever knew and it wasn't worth the battle that I was never going to win.

 

[crazyqx83]

• New study finds that 53% of Millennials believe they will one day be millionaires
• Nearly 1-in-5 report that they they still rely on their parents for financial support
• They expect to retire at 56, though won't start saving for retirement until age 36

Today there are only about 10 million millionaires out of a population of 300 or so million. So that is 3%-4% who have a million dollar worth (not +50%). Further, 80% of millennials aged between 25 and 34 have less than $10,000 in savings and 40% have none. These people better pick up the pace or that $1 million is never going to happen let alone retiring at age 56.

http://www.dailymail.co.uk/news/art...millionaires-someday-according-new-study.html

https://www.cnbc.com/2017/09/14/how-much-money-the-average-millennial-has-in-savings.html

Your stats are a little misleading. I would guess that your biggest potential for being a millionaire is between the ages of 60-70. How many people are in that age range in the US? Are u really expecting infants or teenagers to be millionaires?

 

[jameslee32]

I picture the Trump illegal-kid camps swarming with lenders wanting to give them money before kindergarten.

 

[crazyqx83]

On one hand, it should be . . . on the other, how? They have been told they do not have to be responsible. Obama said to them a legitimate means to free college education was the option of defaulting on student loans. This world we live in now genuinely includes persons, real, living educated humans, Americans, who believe there is something horrifying, evil, within that man who will expect another man to pay for his own debts.

So u would pay a creditor that told you not to pay...?

 

[crazyqx83]

That’s insanely false. Pick up a history book.

https://www.usatoday.com/story/mone...n-xers-and-baby-boomers-fall-short/109902630/

 

[crazyqx83]

How are they being smarter?

By not going into debt to keep up appearances. They may have iPhones, but they aren't going into insane debt for cars (10-40x more expensive than a phone) and aren't buying houses they can't afford.

 

[Ron Mehico]

I see mainly older people at my work and lots of them are very broke or on extremely fixed incomes. It's actually very sad, I'm sure there lots of broke ass 20 year olds too but they have time.

 

[d2atTech]

It’s like losing weight:

spending more than you earn = bad

Saving all the money you can + plus swapping material splurges with (practice sessions of) making babies = good

 

[Ron Mehico]

I would never have put myself in a situation, where a collection agency or some form of forgiveness solicitor had become an option to me, such that the creditor, in recognition of a pathetic debtor, might ever have said such an undignified thing.

WTF are you talking about? You know tuition to an instate kid at UK with housing is around 20k a year now, it was 1,800 for me back in 2003. I would gladly have someone forgive that damn ripoff if I could. Your head would explode if you knew how much debt me and my wife graduated with after all our schooling.

 

[BoulderCat]

You know AC I do have a degree in Economics from some place called UK. We are the worst savers on the planet. We’re all about conspicuous consumption even if we have to go into debt to get what we want. I could give them a lecture on how to retire at 55 owning a home in one of the top 1% of real estate markets in America, but it would be lost, and it would most definitely not involve debt.

 

[Ron Mehico]

I'm talking about the repayment of debt. Not just student loan debt. Any debt. You give your word to repay an amount of money. You have USED someone else's money. It NEVER belonged to you. Yes, I get it. You felt awful when the bill came due. You felt good before that. You want to keep feeling good without the burden of being man enough to repay your own debts. You want someone else to swoop in and take your responsibility away from you and make it theirs. You do not have the ability to comprehend just how corrupt and immoral that is. You think you have a moral ground to stand on because you agreed to purchase something you later determined was not worth that amount. People like you sicken men like me. People who listen to people like you RARELY succeed in producing their own, legitimate wealth. They only succeed in being angry at the sight of it, envying it, and making excuses for their own, chronic disappointments.

I have no idea what you're talking about or if someone touched you in a bad place or what's happening here, student loan repayments can be forgiven if you make I think it's 240 payments on time, and mine are at 7% interest so if you do that you've paid your fair share. I'm not eligible for that due to my income level but I wouldn't fault anyone who took advantage of it or claim moral superiority.

 

[Get Bucket$]

I want someone to present me evidence that the average person from any generation was more fiscally responsible than another generation. For all of human history (20,000 years or so) the majority of people alive at any time have saved next to nothing and lived day to day.

Haven’t read all the posts after this yet so someone may have addressed. You don’t think those that lived through the Great Depression didn’t end up better savers than current generations?

 

[dgtatu01]

Haven’t read all the posts after this yet so someone may have addressed. You don’t think those that lived through the Great Depression didn’t end up better savers than current generations?

No they had pensions and more social security so it looked like on average they saved more.

 

[dgtatu01]

It is not new in concept or even in some practicing examples. What is new is the size and scope, the epidemic or, in your case, the broad fashion in which it now appears. Yes, it is an evil and corrupted belief system that irresponsibility should be rewarded in the form of coverage, and that is describing it in the most polite form I can think of at the moment. What form of success do you expect to be proud of, call your own, if it is not individually earned? What form of man do you expect to hold as equal? These are crusty old fart questions? Thank God in heaven for the few of among your generation rebelling against the fashion, the insane propaganda, that which says earn your keep, pay as you go shows how little you've learned.

Hold up, you’re throwing me into the stereotype you have fashioned of millennials. So in your mind I live at my parents house, don’t save money, and wish someone would pay my student loans? You’re 0 for 3. I’m not really a millennial though, I’m somewhere in between them and Gen X, I was born in 1980.

 

[BankerCat12]

What is everyones financial goal, in regard to retirement age, savings, etc?

My goal is to own 5-7 investment properties and have them paid for in 10yrs. I turn 40 this October. I have two now that I could payoff with cash in the bank and also pay my current house off. I am sure I will have to work past the age of 50 due to insurance but wife has an excellent job. I want to be able to pay for my kids college like our parents did so they do not have the debt coming out of school like we are talking about above.

 

[buckethead1978]

KopiKat,
I don’t know if you are a baby boomer, Gen X, Gen Y, or a millennial.

I do know this though, you are terrible.

 

[Ron Mehico]

My how wonderful. 20 years worth of token payments and the debt is not repaid. That is what men like you call a worthy effort, what men like me call absolute incompetence, failure, misaligned priorities, a lack of basic intelligence, low motivation (really, really low), and just awfully sad.

Also, there is no such thing as debt forgiveness,. Those are just inserted words used for the fashion for this form of gross failure. Indeed, now fashionable. There is only the repayment of debt or the failure to do so. Someone becomes responsible for that debt. It doesn't just vanish into the ether. The only 'fair share" a debtor can ever possibly pay is in full. It is likely you have ancestors rolling in their graves in agony, these concepts, their progeny.

Good stuff, thanks for mature conversation.

 

[Blue63Madison]

• New study finds that 53% of Millennials believe they will one day be millionaires
• Nearly 1-in-5 report that they they still rely on their parents for financial support
• They expect to retire at 56, though won't start saving for retirement until age 36

Today there are only about 10 million millionaires out of a population of 300 or so million. So that is 3%-4% who have a million dollar worth (not +50%). Further, 80% of millennials aged between 25 and 34 have less than $10,000 in savings and 40% have none. These people better pick up the pace or that $1 million is never going to happen let alone retiring at age 56.

http://www.dailymail.co.uk/news/art...millionaires-someday-according-new-study.html

https://www.cnbc.com/2017/09/14/how-much-money-the-average-millennial-has-in-savings.html

The current generation is no different than previous generations. If anything, our country will be in better hands 20 or 30 years from now than it currently is. This is just something else for older people to bitch about.

 

[crazyqx83]

I'm talking about the repayment of debt. Not just student loan debt. Any debt. You give your word to repay an amount of money. You have USED someone else's money. It NEVER belonged to you. Yes, I get it. You felt awful when the bill came due. You felt good before that. You want to keep feeling good without the burden of being man enough to repay your own debts. You want someone else to swoop in and take your responsibility away from you and make it theirs. You do not have the ability to comprehend just how corrupt and immoral that is. You think you have a moral ground to stand on because you agreed to purchase something you later determined was not worth that amount. People like you sicken men like me. People who listen to people like you RARELY succeed in producing their own, legitimate wealth. They only succeed in being angry at the sight of it, envying it, and making excuses for their own, chronic disappointments.

Our president declared bankruptcy on failed investments. You can argue his abilities now that he is in office, but he skirted HUGE debts and now holds the highest office in the free world and is vastly wealthy. So in short, you're an idiot.

 

[crazyqx83]

My how wonderful. 20 years worth of token payments and the debt is not repaid. That is what men like you call a worthy effort, what men like me call absolute incompetence, failure, misaligned priorities, a lack of basic intelligence, low motivation (really, really low), and just awfully sad.

Also, there is no such thing as debt forgiveness,. Those are just inserted words used for the fashion for this form of gross failure. Indeed, now fashionable. There is only the repayment of debt or the failure to do so. Someone becomes responsible for that debt. It doesn't just vanish into the ether. The only 'fair share" a debtor can ever possibly pay is in full. It is likely you have ancestors rolling in their graves in agony, these concepts, their progeny.

You're an idiot. Those loans are repaid by the federal government. It's no different than a tax credit. So keep bitching about jonny jackstudent getting a $25k loan forgiveness that carries a tax bill as ordinary income while corporations get billions in tax breaks.

 

[dgtatu01]

Just googled savings data by generation, guess which generation has the highest % of workers saving for retirement? Guess which generations group of people with children save the most? It’s incredible what a little data can do to knock down stereotypes. Yes there are deadbeat Millenials, but the vast majority I have worked with are very professional, thoughtful, and deliberate about their life choices and their finances.

https://www.google.com/search?q=sav...j1j4&hl=en-US&sourceid=chrome-mobile&ie=UTF-8