In a recent study, the FINRA Investor Education Foundation found millennials (those between the ages of 18 and 34) engaged in a number of troubling financial behaviors.
The recent National Financial Capability Study showed, among other things, a low level of financial literacy among certain groups, millennials especially.
Among the findings were an inability to pay their bills and makes ends meet, high levels of student loan debt and costly credit card behaviors.
Some of the statistics include:
- Twenty-three percent of millennials spend more than their income on a monthly basis.
- Thirty-one percent have unpaid medical debts.
- Fifty-five percent with student loans are afraid they won’t be able to pay them off.
- Thirty-four percent have engaged in three or more costly credit card behaviors.
“Millennials admit to repeatedly
being charged late fees.”
Some of the credit card behaviors millennials admit to engaging in are taking cash advances, only making minimum payments and repeatedly being charged late fees.
According to the study, “Given the younger age and lower household incomes of millennials, it is understandable that they are struggling more than older generations to pay their bills and make ends meet.”
One bright spot may be the recognition among millennials of the problem. The study showed almost half of respondents are concerned they carry too much debt. Now the next challenge is to get them to change their problematic financial behaviors.
Source: finra.org. Photo source: midlandu.edu