What Millennial Debt Looks Like, In 4 Charts

Millennials are notoriously burdened with debt, but what exactly does that debt look like right now? Who carries the biggest burden, and how does it impact their goals? We’re looking at the numbers behind the generation’s debt…

Millennials are notoriously behind in preparing for their financial futures. According reporting by Politico this week, they’re “behind in almost every economic dimension.” The ratio of how much they have invested in assets like 401(k) plans to their income is below Gen X and Boomers and is projected to remain that way—and, of course, their massive student loan debt is partly to blame.

We should note that despite their relative financial trials, they’re still spending. According to a survey from Bankrate.com, Millennials are actually outspending older generations by about $2,300 a year. But that doesn’t mean that debt hasn’t had a significant impact on their lives—and their mindsets. A Harris Poll for the American Institute of CPAs found that 68% of Millennials say debt has a “negative impact” on their daily life, compared to 59% of Xers, and 48% of Boomers. Paying off debt isn’t just a financial burden (and priority) for Millennials, but also a personal and emotional one. More Millennials than any other generation said that their daily lives are disrupted by debt, with symptoms including relationship tension, misleading family and friends about their financial situation, worrying at bedtime, and stressing about everyday financial decisions. A survey by Student Loan Report even found that 69.3% of borrowers say they’d rather get a loan payment than a present for the holidays, and 58% planned on spending money they received over the 2017 holidays to pay back their loans.

As we’ve outlined before, debt is a reality for the majority of them—and though they may…

 
 

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The Newsfeed

Quote of the Day: “My biggest mistake was that in my financial beginnings I did not seek help from an advisor and I did very badly with my investments, but later I was able to recover.”—Male, 33, NY

The Museum of Ice Cream and Sephora are coming together for a sweet collab. Popsicle-shaped lip glosses, sprinkle-filled brushes, and more Instagrammable products are available for a limited time. Collaborations seem to be the MOIC’s latest move to rake in revenue (they also teamed up with Target), and this one makes sense: young consumers are indulging their “treat yo self” moments with makeup, and similar products like Too Faced’s peach and chocolate-themed collections are flying off shelves. (Cosmopolitan)

Sony is debuting their own ode to retro gaming: the PlayStation Classic. Millennial geeks everywhere, rejoice. The tiny console (with mini controllers to match) will include 20 fan favorite games like Final Fantasy VII and Tekken 3. The question isn’t why Sony is doing this, it’s why more companies aren’t doing this after seeing Nintendo’s runaway success with the SNES and NES Classic. Consoles will come to shelves in early December, right in time for the holidays. (TechCrunch)

The next Netflix movie could premiere on IMAX. And It’s not just Netflix: IMAX’s CEO said “all of the streaming” giants are “in active discussions” to bring their movies to the big screen. Streaming services have shaken up Hollywood by premiering big-budget movies with A-list actors on small screens, betting that young viewers prefer their couches to theaters. But while staying in is the new going out for many Millennials, their love of experiences is also bringing back the box office. (THRThe Verge)

Some wealthy Millennials are becoming social justice warriors to make an impact with their extra resources. Members of Resource Generation give 16 times more than they did before joining up, and together they’ve raised $120,000 for an affordable housing organization, donated $135,000 to the Social Justice Fund Northwest, and much more. In our Topline on the topic, 88% of 13-35-year-olds said they think they can make a difference by getting involved. (Business Insider)

Chinese Millennials and Gen Z are turning their attention from livestreaming to short video clips. Douyin, a short video app known as TikTok in the U.S., has over 500 million monthly active users globally. It was even the world’s most-downloaded app for the first half of 2018, according to Sensor Tower, and its rival Kuaishou is racking up users too. Meanwhile, users and stock are dropping for livestreaming platforms—with the exception of esports. (CNBC)

Quote of the Day: “I once spent $30,000 in one year solely on fun things (entertainment, traveling, dining out, etc.).”—Female, 21, PA

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