The millennials are being challenged in navigating the financial maze in the world of finances, from caregiving to saving money, and planning for future financial stability. Navigating the financial maze can be difficult for the millennial generation.
The Financial Maze in the World of Finances (Photo: Investopedia)
The Financial Maze in the World of Finances
Millennials, or the “sandwich” generation, have been tackling and navigating the financial maze in the world of finances. It could be a troubling task. However, navigating through the financial maze is important, even if it proves to be challenging.
The Financial Maze of Caregiving
According to the reports from Medium, the millennials navigating the financial maze have become the generation that is being sandwiched because of the economic strain that is affecting household finances.
The Employment Benefit Research Institute (EBRI) has released new insights that show working parents, particularly those who are also caregivers, are doubtful about their financial future. Providing care has had a significant impact on the mental health of individuals, as per a survey finding that 66% of respondents experienced adverse effects. Furthermore, 57% of those surveyed observed decreased physical health.
Caregiving can be a taxing role due to its challenges, and the fallout of this job can affect those the ones who care for the children and adults. A study that exemplifies caregiving shows that families’ income for child care exceeds $18,000 per child.
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The Financial Maze of Student Loan Payments
Medium, the same publisher, states that in order to navigate the financial maze of this world, it is important to address student loan payments.
Many young adults, including those in the Millennial and GenXer age groups, have struggled to balance the cost of paying off student loans, covering necessary expenses, and saving for the future. In fact, a significant number of Millennials have reported carrying debts of over $40,000.
The Financial Maze of Retirement Savings
The last financial maze that is tackled in this article is the millennials’ retirement savings.
Medium has brought to light struggles in tackling the financial maze of retirement savings. According to the generations of baby boomers, GenXers, and millennials, they hold significant retirement savings. The retirement savings are compared with these three generations. It was revealed that the median retirement savings of the baby boomers hold a significant number of $162,000 compared to the GenXers, who have an average retirement savings of $87,000. However, millennials have an average of $50,000.
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