Research has shown that millennials are expected to be the first generation to earn less money than their predecessors. Currently, millennials (those individuals born between 1980 and 2000) are expected to earn less than Generation X (those individuals born between 1966 and 1980). In the U.S., the financial trend has been upward for each new generation for the past 100 years. The millennials will be the first generation to break that economic trend.
The primary reason is the market crash in 2007-2008, the subsequent slow economic growth in the United States, rising costs, and the degree of student debt. Even the current events, like the financial troubles within Europe and the Brexit vote, are expected to hurt, not help, any possible trend toward higher wages. The current global conflicts, including ethnic/ religious conflicts and terrorism, are likely to lower economic growth for the millennials.
The challenges for the millennials goes beyond money. Yes, they are going to spend more money on rent than any generation. Yes, they are going to be buying their first house later in life than […]