Financial literacy and security is what every millennial needs to learn about. These days, millennials are having quite a difficult time surviving due to the nature of the times we live in. With the Great Recession of 2008 now behind us, maybe it's time that we start to turn things around. After all, millennials will be the bread and butter for this country 10 years from now.
Millennials -- that is those who were born between 1980 and 2000 -- currently have a staggering savings rate of negative two percent, which obviously means that they are either burning through their assets or charging everything onto their credit card. Just to give another reference, those aged 35 to 44 have a savings rate of about three percent, the savings rate jumps to 13 percent for those who are 55 and older.
What's even worse is when millennials decide that in order to survive they must file for bankruptcy to keep from defaulting on their student loans. Student loans are an immense problem as we all know it, yet we all elect to do nothing about it.
Student loans can also make an employee unemployable due to unembellished credit flaws. What is even shoddier is when you inherit student debt of a deceased loved one, which makes it about a million times worse.
Local bankruptcy expert Richard Weaver, commented, "If you have 3-6 months of regular monthly expenses set aside for a rainy day, you will avoid the kind of pressures that will push you to make unwise financial decisions."
Once you graduate there is no need for a fancy car or a fancy penthouse, yet there is a need to save. A lack of savings increases the vulnerability of millennials, and indeed leaves many of them without a financial cushion for unexpected expenses down the line such as a common car accident, injury, or serious illness.
As millennials get older, unexpected expenses like medical bills might occur as well, which could deepen the hole and take away from causes such as home ownership and even retirement.
With millennials saving at a negative rate, it now appears that millennials are worse off than the previous generation. According to an article released in 1995, Gen Xers were on average earning wages that were nine percent higher than millennials' wages are today. Furthermore, their median net worth was $18,200 compared to a measly $10,400 for the average Millennial today.
Filing bankruptcy can be a complicated issue and should always be dealt with very sensitively, with the issue getting worse and student loans beginning to compound even more, is it time for a government bailout in this sector?