According to a report that was done by Ally Financial, 25 percent of people who are between the ages of 18 and 34 do not know how to deal with their finances. Over 2,000 people were surveyed. Half of them also stated that they needed help managing their finances.
Even though previous generations may not have had financial education, they still had an easier time managing their finances. Kimberly Palmer works for Nerd Wallet. She stated that the financial world is more complicated today than it was in the past. That is why more people are searching for information that they did not learn in school.
Kimberly stated that when millennials graduate from college, they turn to multiple sources for financial advice. Only 35 percent of Millennials stated that they were confident in the way that they managed their finances. Kimberly believes that age is the reason that millennials are not able to manage their finances. They do not have much financial experience.
Additionally, studies have shown that millennials are not as financially well-off as their parents were at the same age. They have to deal with higher home prices and lower salaries. A report showed that the average millennial believes that they have to earn at least $53,000 to be comfortable. The average millennial only makes $35,000 per year.
Kimberly also stated that millennials are concerned about their financial future. They saw the impact that the Great Recession had on their parents. The report showed that 80 percent of millennials save money.
However, half of millennials stated that they do not think that they will ever be able to retire. Even though many millennials have full-time jobs, they do not have access to pensions. They have time to prepare for retirement, but many of them do not know how to do so.