A recent survey shows that 70 percent of millennials have no clue how to manage their money — even those who earn six figures.
According to a new survey by PYMNTS, 70 percent of millennials are living paycheck to paycheck, and millennials only have an average of $3,928 saved for an emergency.
The survey also shows that 53% of people who earn between $50,000 and $100,000 live paycheck to paycheck, and 60% of millennials who earn over $100,000 also live paycheck to paycheck.
The survey reports: “Living paycheck to paycheck sometimes carries connotations of barely scraping by and of poverty. The reality of a paycheck-to-paycheck lifestyle in the United States today is much more complex, and the current economic environment has made it even more complicated.”
Of course, Tip Hero tries to defend this, writing: “If you’re not a millennial, don’t be so quick to judge this generation. The cost of living is quite expensive and has gone up faster than the average salary. While earning six figures used to sound like a lot of money, now, it doesn’t stretch as far.”
The outlet also notes that a salary of $100,000 is considered part of the middle class, which ranges from an income of $48,500 to $145,500.
The problem is, millennials have taken on a lot of debt and often pay ridiculously high rent to live in small apartments in major cities. The average student loan debt for a millennial is about $80,000.
Many millennials are also struggling financially because “they have gotten accustomed to a luxurious lifestyle… While they are making six figures, they tend to increase the cost of their lifestyle as their paycheck increases,” according to Tip Hero.
It is clear that millennials have not been taught how to properly manage their money. Schools don’t teach financial management or budgeting, and parents have largely failed in that area too. Ultimately, it is still the fault of these millennials who don’t appear to even be trying to manage their finances. While they can blame the school system and their parents, it all comes down to personal responsibility.