Those who were born from mid-1980s until late 1990s are called millennials. Based on a recent study, this generation is having a lot of financial difficulty. They utilize payday loans, as well as ransack their retirement funds. With the help of George Washington University Global Financial Literacy Excellence Center, a survey was conducted by PricewaterhouseCoopers which shows that 24% of the respondents have basic financial knowledge, 81% of college-literate millennials have a minimum of at least one long-term debt and 42% are resorting to auto title and payday loans, as well as alternative financial options. Also, roughly 30% of them have checking accounts that are overdrawn.
Shannon Schuyler, Chief Purpose Office of PwC, believes that these millennials stay at a single job for an average of 18 months. She says that this generation is craving experiences, always wanting to travel and eat out and it seems that they have a “live now versus live for the future” mindset.
Nevertheless, not everyone from this generation is suffering. Some of them believe that it really depends on the person, and the choices he or she makes. Briana Snyder and Max Spang, both 27, are two examples of millennials who are not struggling. Snyder is the owner of Dayton boutique and party shop, aside from being a wedding photographer. Together with Spang, they are in the process of starting a corporate video and photography business. According to Snyder, she had one finance class during high school and after graduating from University of Dayton, she has never used a credit card. For her, every minute and every penny counts.
Baker Krizner Financial Planning is working on including the millennials in their customer base. According to their 27-year old certified financial planner, Eric Powell, they want to put this generation in the right direction. He is a fellow millennial who had a considerable amount of student loan debt. Powell frequently deals with younger clients, and he believes millennials are at a loss where to begin in terms of handling their finances due to the lack of financial education. Powell said that high school students should learn introductory personal finance before they can even acquire a college loan debt. Powell is a board member of the Junior Achievement’s and according to him, the organization is doing a wonderful job in terms of financial education. Yet he believes that schools should have semester long classes to educate students on how to balance a checkbook and open a checking account.