Why Are Millennials Struggling With Financial Independence?
The financial crisis has affected billions of people around the world. It has created a situation where a whole generation of people are at a huge disadvantage compared to generations of the past.
A whole generation of people who feel hopeless
There was a time when going to university would put you ahead, it would mean something. However, more and more graduates are finding themselves at the same level as those who bypassed university and went straight into the workforce. That is assuming, of course, that they have successfully managed to secure employment.
The millennials (or Generation Y) are finding that whichever road they choose to take they face obstacles. Education alone no longer guarantees you the best jobs; employers want their potential employees to have it all. The job market is extremely competitive, with thousands of people all fighting for the same jobs, so you can hardly blame employers for setting their expectations high.
Surely things are better now than in the past?
When comparing how things were to how things are now, there has clearly been much advancement. Technology has improved so much; at the touch of a button we can do almost anything from ordering a takeaway to reading the complete works of Shakespeare.
Despite so many advancements, many youngsters find themselves unable to secure jobs. Without a decent income they are unable to afford homes or save for their future. So, how is it that we have a whole generation who are struggling?
So, what is to be blamed?
In the past the current generation reap the benefits of previous generations. The previous generation would improve services and resources which allowed their children to prosper.
However, a combination of factors has meant that we can no longer financially sustain the lifestyle we have become accustom to. This has meant that previous generations are now finding themselves in a position of having to support their children for longer than they anticipated.
The impact on previous generations
The difficulties millennials are facing doesn’t only impact them directly, it also affects their parents. These people have worked hard, raised a family, and are looking forward to their retirement. Instead parents of adult children have found themselves providing millennials support with-
- Housing – increase in house prices and rents meant that people are staying at home longer
- Finances – low incomes and high prices mean that more and more people are finding themselves in debt
- Childcare – high childcare costs mean that grandparents often need to step in so that their adult children can work
- Future – after seeing the struggles faced by their adult children they will understandably want to try to ensure their grandchildren do not suffer in the same way
How will the future look?
Since millennials are struggling with their current circumstances they do not have the luxury of preparing for the future. This means that they are less likely to have pensions, health/ life insurance, or savings. When the support from previous generations disappears it is unclear what will happen to the millennials and the generations that come after.