Young adults have had a relatively tough time over the past four or five years. Entry-level jobs have been scant for the onslaught of recent college graduates, many of whom have taken menial jobs to make ends meet until a “real job” comes their way.
According to Pew Research, in 2012 only one-third of engineering majors got work as engineers, and only 26 percent of physical sciences majors worked in any science, technology, engineering or math occupation.
[CLICK HERE to read the article, "Chart of the week: Where engineering and English majors end up working," from Pew Research, July 11, 2014.]
The scarcity of jobs has forced many young people to live at home, either while in college or after graduation. Approximately 56 percent of young adults ages 18 to 24 lived in their parents’ home in 2012, while 16 percent of those ages 25 to 31 did so as well.
[CLICK HERE to read the article, "A Rising Share of Young Adults Live in Their Parents' Home," from Pew Research, Aug. 1, 2013.]
However, a little bit of adversity doesn’t usually hurt. In addition to building character, it can also create a heightened sense of accomplishment and appreciation when your proverbial ship does come in. According to Scott Hammond, a clinical professor of management at the Huntsman School of Business at Utah State University and author of “Lessons of the Lost: Finding Hope and Resilience in Work, Life, and the Wilderness,” when bad things happen, one of the most important things you can do is cultivate hope for something better to come.
While working at something other than their dream jobs, the millennial generation appears to be doing just that. A new study from Transamerica Insurance reveals that millennials are actually beginning to save for retirement earlier than their baby boomer parents. While most baby boomers started saving for retirement at around age 35, 70 percent of people in their 20s and 30s have already started saving. Unfortunately, the rest of them appear to be at the opposite end of the financial spectrum, living paycheck to paycheck (if they’re lucky) and otherwise drowning in student loans and consumer debt.
[CLICK HERE to read the article, "How Resilient People Stand Back up When Life Knocks Them Down," from Fast Company, 2014.]
[CLICK HERE to read the article, "Study: Millennials Saving Better than Baby Boomers," from NBC San Diego, July 8, 2014.]
In this post-recession world of tentative jobs, tight credit and oppressive student loan debt, young adults may be more risk averse and rightfully skeptical of the value of status and wealth. Perhaps this new generation now better appreciates the things handed to them by their parents just a decade ago — like cars, laptops and cellphones. As each new generation becomes parents, it passes on values both learned and experienced. So in the future, their children and grandchildren may return to the values of saving for what they want instead of relying on credit. Perhaps.
In the meantime, we’re here to help you and the young adults among your family and friends work toward developing sound financial habits for the future. If we can offer guidance, please give us a call.
[CLICK HERE to read the article, "He's the Top U.S. Mortgage Salesman. His Daughter Isn't Buying It," from Bloomberg, July 1, 2014.]
[CLICK HERE to read the article, "Dispersing Millennials," from New Geography, July 9, 2014.]
[CLICK HERE to read the article, "Commentary: Millennials Think Government Is Inefficient, Abuses Its Power, and Supports Cronyism," from Public CEO, July 11, 2014.]
Our firm assists retirees and pre-retirees in the creation of retirement strategies that include the use of insurance products.
These articles are being provided for informational purposes only and should not be used as the basis for any financial decisions. While we believe this information to be correct, we do not guarantee the accuracy or completeness of the information included. All clients are encouraged to consult qualified tax and legal professionals before making any decisions about their personal situations.
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