According to BusinessInsider.com, millennials are the generation that suffers the most debt, and have managed to rack up $1 trillion worth of it. Thankfully, there are organizations and people out there who care and can help you achieve a debt-free life – learn more at Credit Canada Debt Solutions about the different options available to you.
Budgeting is an important part of getting yourself out of debt, but how did millennials get there in the first place? Here are three reasons why millennials are the generation with the most financial worries.
1. Student Loans
It’s a problem that a number of millennials have: in order to get enough money to buy a home and have a comfortable lifestyle, you need a job, but in order to get a job, you need a good education. Unfortunately, higher education costs keep rising, putting students into thousands of dollars of debt, and leaving them unable to afford any big expenses (even with a job). It’s a vicious cycle, and there doesn’t seem to be a solution in sight as there has been little help from the government to provide aid or come up with a plan to curb this crisis.
2. Things Cost a Lot More
Not only do education costs keep rising, but there are also a number of other things that are much more expensive than they used to be. It’ll cost a millennial more than what it did their parents to get married, buy or rent a home, purchase a vehicle, or pay for childcare. Depending on where you live, some parents can expect to pay $3,100 a month for the cost of putting two children into child care when the parent has to return to work. It’s a ridiculous amount that many parents struggle to keep up with, and explains why a number of millennials are holding off on having kids in the first place.
3. Expectation vs. Reality
Many millennials grew up seeing baby boomers being able to easily afford buying a home and vehicle, getting married, going on vacation, and having kids. But as noted above, rising costs have made these things difficult to do. On top of this, social media creates a warped sense of reality, where people show lives that aren’t really attainable for everyone.
In order to achieve this ideal life, a number of millennials have turned to credit cards. Whether it’s buying a vehicle, going on vacation, paying for a wedding, or even the smaller things like just being able to afford groceries, a number of them have managed to accumulate a large amount of credit card debt.
Advice for Living Debt Free
It’s a tough time for millennials but it’s not impossible to live debt free. Setting a budget for yourself is one of the most effective ways of saving money and paying off your debt. You can also turn to certified Credit Counsellors who can help you come up with solutions. Just remember: you’re not alone, and there’s always a way out.
To read more on topics like this, check out the lifestyle category.