The current younger generation called as millennials is facing a number of financial challenges. The previous generation called as baby boomers enjoyed a much better economy. The median household income is $40581 and the millennials earn 20% less than what their parents earned at the same age. The modern age millennials are better educated, but they are not capable enough to earn more. Much of this anxiety is exhibited in the 2016 election. The millennials have greater student debts and lower home ownership rate.
Donald Trump became the next president of the United States mainly through his promise of restoring prosperity. The millennials were frustrated due to the economic crunch. White millennials earn more than their latino and black counterparts. Still, the millennials are not able to reach the financial position as that of their parents.
The baby boomers were able to own a house and raise kids at the age of 28. Millennials who are 28 now are still struggling to find a good paying job and they end up with a large student debt they seem unable to repay. The baby boomers are excited by the prospects for their children, but they agree that their children have a harder life than them. It is a widespread belief that college education greatly helps in earning a higher income. However, modern day millennials with a college education earn similar to what the baby boomers earned in 1989 without a degree.
The millennials have a college education compared to the previous generation, but the home ownership for baby boomers was 46% in 1989. Now, millennials have a much lower home ownership rate of 43%. The median net worth of millennials is also 56% less than that of baby boomers in the past.
The discrimination in terms of education, housing and jobs has not decreased greatly because the white millennials are better off in their life compared to the Latinos and Blacks. The white group of millennials are worse affected as their median income reduced by 21% compared to the baby boomers. Millennials from the black race also face a decline, but they earn 1.4% less than their parents. The Latinos have improved their financial condition as the Latino millennials earn 29% more than their parents.
Analysts predict that the available opportunities are much lesser for the millennials. Those born in 1950 had 79% chance of out-earning their parents. However, those born in 1980 only have a 50% chance of out-earning their parents. The declining income of the millennials is a problem for the whole country. The baby boomers are now retired or reaching their retirement stage. Their retirement benefits are funded by the taxes paid by the millennials. As the millennials still continue to struggle with low paying jobs, the Social Security and Medicare funds will reduce further, creating a problem for the baby boomers as well. Experts predict that the current financial challenges will be useful in forecasting the economical conditions in the future.