The financial struggles of US millennials have been highlighted by a recent survey conducted by PYMNTS & LendingClub. According to the survey, the majority of millennials are living paycheck to paycheck as a result of ongoing personal and economic hardships. In fact, 73.2% of the surveyed group, which included individuals between the ages of 27 and 42, were found to be living within tight financial budgets. This financial strain was also felt by 64.2% of Generation X and 49.5% of baby boomers. Additionally, the report found that Generation Z, which accounts for those born between 1997 and 2012, experienced an 8% increase from the year prior in individuals dealing with money restrictions, making up 65.5% of the respondents.
There were several reasons cited for this distressing situation, with 38.4% of respondents stating that their salaries were just enough to pay basic bills. However, over a quarter of the surveyed group also cited the need to pay for other family members and “significant” accrued debts as additional reasons for their financial struggles. Moreover, the financial strain was exacerbated by the fact that many Americans lost their cash savings during the height of the COVID-19 pandemic when they lost their main source of income or had to take pay cuts to make ends meet.
The report also highlighted that many Americans are not saving any money, with 33% of consumers reporting that they currently have no savings. In addition, half of financially struggling consumers are unable to save and have no savings. Despite these challenges, the survey found that millennials are most capable of performing well in managing their finances, with an average savings of $11,000 last month, up from $7,300 a year earlier. The report cited retirement and covering unforeseen emergencies as the most significant reasons for creating savings, with paying off debt being the most important motivation for financially struggling consumers.
The findings of the survey paint a stark reality for millions of Americans, with millennials bearing the brunt of ongoing personal and economic challenges. It is a reminder that financial security is not a given, but something that must be fought for and protected.
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