“You millennials are just lazy! Back in my day we paid our way through college by working!”
“Yeah well, what you paid for a semester of college will just barely cover my textbooks, so…”
Young people are poor, in general. That shouldn’t be surprising. Unless you invent the next Facebook or Snapchat, odds are if you’re a millennial you’re close to broke. What is surprising, however, is exactly how broke the generation is. An article in the Economical Millennial says that the net worth for the average Millennial (18 to 30, according to the article) has a net worth that is in the negatives. -$17,612, to be exact. So, technically, baby boomers are correct when they say that our generation doesn’t contribute anything. Why is my generation so broke? To be fair, the article says that we haven’t been around long enough to really start bringing in money, but there are also some big factors pushing our value into the negatives.
The Economical Millennial reports: Why this number is so low is almost completely because of student loans. Older generations have either paid off their student loans, are foregone them in their entirety, and they’ve had more working years to build their wealth. 18-30 year-olds get to experience what life is like with a large monthly payment (which can be adjusted based on income, resulting in more interest being paid) and only a degree to show for it (if they graduate).
Going a step further, universities and community college have been raising their rates over the past decade since they know that it is so easy for students to get public loans for higher education. Some of the new money may be going into capital improvements or increased scholarships, but it seems as though a lot of it is going towards higher salaries for administrators. Professors may have gotten a small bump in pay that has slightly outpaced inflation over the last seven years, but the schools know the money is there for the taking so why pass it up?
They say that a person’s value isn’t based on their wallet. Thank goodness for that because we’re literally worthless!
I’m very lucky to come from a fairly well-0ff family who loves and supports me. I’ll be graduating college with an empty bank account, but I’ll be debt free. Who knew that zero could be a high score? I’m already almost $20,000 ahead of everyone around me! Yeah, baby!!!