Millennials Struggle with Rising Costs and Debt
1min read Millennials, the generation born between 1981 and 1996, are facing a unique set of financial challenges in today's uncertain economic climate. As costs continue to rise, this demographic is grappling with the delicate balance between managing debt and building savings. A recent survey by Fortune revealed that 59% of millennials are considering postponing major life events due to financial pressure.
One of the primary concerns for millennials is the rising cost of living. According to a report by the Economic Policy Institute, the cost of living has increased by 30% since 2000, while wages have only risen by 15% during the same period. This disparity has left many millennials struggling to make ends meet, let alone save for the future.
Student loan debt is another significant burden for many millennials. The total student loan debt in the United States has reached $1.71 trillion, with the average graduate carrying a debt of $32,731. This financial burden can make it difficult for millennials to save for other important life events, such as buying a home or starting a family.
Despite these challenges, millennials are finding creative ways to manage their finances. Many are turning to side hustles and freelance work to supplement their income. According to a survey by Upwork and Freelancers Union, 57.3 million Americans freelanced in 2019, representing 35% of the U.S. workforce. This trend is particularly prevalent among millennials, who are using their skills and passions to generate additional revenue.
Investing is another strategy that millennials are employing to build their savings. The rise of robo-advisors and low-cost index funds has made it easier for young people to start investing with minimal capital. According to a survey by Charles Schwab, 73% of millennials are investing in the stock market, compared to 62% of baby boomers.
However, the uncertain economic climate has made it difficult for millennials to plan for the future. The COVID-19 pandemic has exacerbated these challenges, with many millennials facing job loss or reduced hours. According to a survey by the Pew Research Center, 52% of millennials have experienced job loss or a reduction in hours due to the pandemic 
