How Millennials Shape the Global Short-Term Loan Industry
By Space Coast Daily // March 12, 2019
Nearly one in four millennials still live with parents
For those born between 1980 and the mid-1990s, otherwise known as millennials or Generation Y, the wealth that their parents’ generation enjoyed may never materialize.
Nearly one in four millennials still live with their parents
With housing prices continuing to rise, the number of people living with their parents has been growing. In fact, it’s now estimated that nearly a quarter of millennials live with their parents – an all-time high.
Indeed, home ownership among millennials is reported to be around 8 percentage points lower than previous generations’ was in the same age group. While there are many issues that may be at play, housing prices rising at a faster pace than wages is likely playing a big role.
In the US and Italy, disposable income for millennials isn’t much higher than it was 30 years ago
According to research undertaken by UK newspaper The Guardian, in the US and Italy, disposable income for millennials isn’t much higher in real terms than it was 30 years ago, despite the fact that other parts of the population have experienced “handsome gains”.
The same research also found that, in the US, those under 30 years old were now poorer than retired people. In addition, it was discovered that, in the UK, pensioner disposable income has grown three times faster than the income of young people.
It’s not just owning a property which has become nigh on impossible for many millennials. Finding the money to pay rental costs, especially in the larger cities where many of the jobs are to be had, has also become difficult. All of this has led to a large minority of this generation choosing to live at home to save cash, often in an attempt to get on the property ladder.
Debt is also an issue for millennials
And it’s not only wages and housing prices that are the problem. For millennials, debt is a very real issue, with research revealing that in the US, for example, young people have $3.1 trillion of student debt.
According to UK-based credit broker Cash lady, paying bills is one of the top three reasons why people choose to take out a short-term loan. Although this data isn’t split into age groups, the issues faces by millennials mean that they may be more likely to turn to loans and other forms of finance, to bridge the gap between how much they are earning and the cost of the bills that come in each month.
Unexpected expenses is another reason given by those taking out a loan of this kind, potentially demonstrating the lack of spare money to put aside each month for a rainy day. An issue not exclusive to millennials, of course, but one that may be magnified in this generation.
The challenges Generation Y face both now and into the future, could result in a greater need for short-term finance worldwide. Whether or not this is sustainable and the consequences of this for millennials as they grow older and head towards retirement is unknown. We are in unchartered waters and only time will tell.
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