Empty wallet and several coins.Empty wallet and several coins.InternationalIndiaAfricaFrom having to afford child care and all the expenses that come from raising children, as well as providing care for aging relatives, millennials are accounting for the majority of Americans who are feeling the financial burn, a recent survey found.New findings have suggested that the majority of US millennials are living paycheck to paycheck as a result of ongoing personal and economic hardships.A joint survey by PYMNTS & LendingClub found that 60.1% of surveyed consumers were living within tight financial budgets, with millennials – those between the ages of 27 and 42 – making up 73.2% of the surveyed group.Officials also determined the financial strain also befell 64.2% of Generation X and 49.5% of baby boomers. Generation Z, which accounts for those born between 1997 and 2012, made up 65.5% of individuals dealing with money restrictions – an 8% increase from the year prior.Baby boomers are described as any individual between 1946 and 1964, with Generation X accounting for others born from 1965 to 1980.
"The oldest millennials are in their 40s now and often managing expenses for not just their kids but also aging parents," Anuj Nayar, a financial health officer at LendingClub, told US media.
As for the reasons for such a distressing situation, most often (38.4%) respondents cited having salaries that were just enough to pay basic bills. However, more than a quarter of the respondents also indicated their situation was caused by the need to pay for other family members and “significant” accrued debts.The financial strain for many was further complicated by the fact that many Americans lost their cash savings during the height of the COVID-19 pandemic, when many lost their main source of income or had to take pay cuts to make end’s meet.
"One-third of consumers report that they are currently not saving any money, with 60% of these consumers also saying they have no pre-existing savings," the report reads. "Additionally, half of financially struggling consumers are unable to save and have no savings."
Despite the financial hardships, the report also outlined that millennials are most capable of performing well in managing their finances as their average savings last month amounted to $11,000, up from $7,300 a year earlier. Overall, retirement and covering unforeseen emergencies were cited as the most significant reasons for creating savings.
"Among all consumers, the most important reason for setting short-term saving goals is to repay debt. Financially struggling consumers are the most likely to cite paying off debt as their most important motivation," adds the report.
The results of report were collected from March 8-17 and based on a census-balanced survey of 3,363 US consumers.