Millennials have taken on significant debt to pay for higher education but are smart about paying it off. While they have high costs like student loans, rent, and lifestyles to support on low salaries, millennials are repaying debts faster than previous generations and leveraging deals and savings to put more toward loans. Rather than carrying loans for decades, they aim to repay existing loans quickly to free up funds for new purposes.
2. Millennial are the people born between 1981 and 1996.
This is the generation which saw the world usher into
modern digital age. They are the eye-witness to the birth of
personal computers, internet, mobile phones, and
smartphones.
3. In this digital age, one might assume that this generation
must be pretty savvy with managing their money owing to
all the information and tools available around them to help
them be better with their money management, but instead,
the truth of the reality is much far away from this
assumption.
4. People born in the late 20th century knew that it was not
possible for them to have a better education without going
into debt. The income and the savings of their parents was
not just enough to finance their higher education.
5. So a fresher, just out of college, is left with:
๏ถ A loan to repay
๏ถ A high rent to pay
๏ถ A higher monthly budget even for basic necessities of life
๏ถ A salary no better than the pocket-money in college.
๏ถ A lifestyle to look towards to (which costs at least 20 times their
salary)
6. Also, this generation does not remains employed with their
first company until their retirement to retire with a pension.
Instead, they hop from one job to another and also need to
save and invest to build a retirement corpus.
7. So, are Millennial Only Borrowing?
Actually no. Even though they have so limited money compared
to their expenses, and all kinds of debts to deal with, Gen-Y is
actually good with their repayments. They no longer want to run
a home loan for 30 years or a personal loan for 5 years.
8. In the information age, they are more aware than their
previous generation about money and have now better
investments to support their lifestyle. They are also good at
making the best use of their money.
9. And millennial are making the best out of these using the
different deals, coupons, and vouchers which would help
them save money. All this money saving is with the aim to
repay existing loans as soon as possible only to avail a new
loan for a new purpose.
