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Millennials aren't filing bankruptcy because of spending habits

The image of financially inept young adults is a popular one in most forms of the media. Many people in Washington cannot be blamed for holding on to this idea of big-spending young adults who ultimately land themselves in bankruptcy due to nothing other than irresponsible actions. However, real life paints a much different picture, and many Millennials actually have a firm grasp on their finances, giving further credence to what most people already know -- bankruptcy is usually the result of extenuating life circumstances that are often beyond people's control.

Ipsos -- a research firm -- joined efforts with Sallie Mae to conduct a study of college-aged students and their financial habits. While interviewing college students, they discovered that most of them are doing quite well on the financial front. Over 60 percent of college students never spend outside of their means, while another 77 percent always pay their monthly bills on time. College students are managing to actually save money too. According to the study, over half of students save some amount of money every single month.

This financial aptitude could in part be due to the fact that Millennials are the generation with the most education in American history. However, that education has come at a price. Collectively, this same age group is carrying roughly $1.2 trillion worth of student loans. With the increasingly enormous cost of a college education and the inability to find secure, decent-paying jobs without degrees, college students are being forced to be more in tune with their day-to-day finances than past generations have been.

The current financial climate in Washington is unsteady, and Millennials have considerable burdens on their shoulders. Indeed, many college students and other young adults strive to live financially stable lives. Student loans pose serious threats to that stability, as do other large financial burdens, such as unexpected medical bills or the sudden loss of employment. For those who have worked to be financially conscious consumers and are still in need of debt relief, bankruptcy can provide paths to fresh financial starts.

Source: TIME, "Are You Smarter About Credit than a Typical 20-Year-Old?", Dan Kadlec, March 10, 2016

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