New findings from the New York Federal Reserve reveal that millennials have now racked up over US$1 trillion of debt.
Millions across all generations have yet to fully recover from the global financial crisis, but displays of extreme wealth are more visible than ever, thanks to social media. According to a 2018 report from the St. Louis Federal Reserve Bank, mortgage debt is about 15 percent lower for millennials and credit card debt among millennials was about two-thirds that of Gen X.
Millennials are also more committed to higher education. Between 2001 and 2016, the number of people aged 25 to 29 with at least a four year degree grew by 25 percent. Student debt was cited by the Federal Reserve in its January 2019 Consumer and Community Context report as a factor in millennials delaying homeownership. However, given millennials’ propensity to contribute more to their retirement savings accounts, it’s not certain that student loan debt alone is what is keeping them out of the housing market.
They aren’t the only ones
Because we just don’t pay it back. And the banks keep giving more. They even call student debt “good debt”. It’s wonderful! (...talk to us in 10 years)
And look, they’re all flaunting $1,000 devices they can’t afford.