Generation Y members, also known as millennials have notably less motivation to purchase a vehicle or real estate compared to the previous decades. Numerous individuals are tolerating occupations at less pay since they are less challenging. Many people are accepting jobs at reduced pay because they are easier and much less mentally challenging compared to a job which demands a higher education. In other words, these people may accept a serving or retail position to pay for college. However because of accessibility and cost of education, they may choose to drop out of college and keep the job they have currently invested time in.
Even though it has been said that a college graduate will make on average one million dollars dynamically over the years in contrast to another individual without a college education, the student loan debt level is excessive at one trillion in approximation. This is a number that is imaginably startling to any college freshman straight out of high school in a lower class that cannot afford to pay for college tuition out of pocket.
The average student of the Y generation earns their degree accruing $26,000 in loan debt to obtain such education. This is one among several reasons that more students are returning home to once again live with their parents. Due to the higher cost of living and many jobs requiring a higher level of education, this generation is less likely have the funds to lease or own their own house.
This hurts the economy where the home owners that buy houses to fix and resell aren’t making as big of a profit as they had planned for. It will be seen that more and more people aren’t able to acquire housing due to the extreme expense and exceptional credit requirements. The bank is coll...
... middle of paper ...
...-Retail-sales-report-mirrors-Millennial-buying-habits.>.
Thompson, Derek, and Jordan Weissmann. "Millennials Aren't Buying Cars Or Houses, And It Could Hurt The Economy." Business Insider. Business Insider Inc., 25 Aug. 2012. Web. 17 Nov. 2013. .
Touryalai, Halah. "Student Loan Problems: One Third Of Millennials Regret Going To College." Forbes. Forbes Magazine, 22 May 2013. Web. 17 Nov. 2013. .
Tuttle, Brad. "Business & Money." Business Money Millennials Are Biggest Suckers for Selfish Impulse Buys Comments. Time Inc., 27 Apr. 2012. Web. 17 Nov. 2013. .
In the article, “A Generation of Slackers? Not So Much”, Catherine Rampell explains why older generations find millennials to be the laziest generation yet and provides facts that contrast the claim. The generations that came before millennials like Generation X and Baby Boomers have multiple reasons explaining why young people have became less productive over the years. Catherine Rampell provides information regarding how millennials are not as lazy as Generation X has made them out to be.
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
One statistic that Owen and Sawhill presented was “Hamilton Project research shows that 23- to 25-year-olds with bachelor’s degrees make $12,000 more than high school graduates but by age 50, the gap has grown to $46,500 (Figure 1). When we look at lifetime earnings—the sum of earnings over a career—the total premium is $570,000 for a bachelor’s degree and $170,000 for an associate’s degree. (Owen, Sawhill pg 641). Owen and Sawhill also mention that “with tuitions rising faster than family incomes, the typical college student is now more dependent than in the past on loans, creating serious risks for the individual student and perhaps for the system as a whole, should widespread defaults occur in the future. Federal student loans now total close to $1 trillion, larger than credit card debt or auto loans and second only to mortgage debt on household balance sheets” (Owen, Sawhill pg 642). Basically, what the authors are saying is college is expensive, but for some career paths, the training and education received in college is necessary to have that job and the benefits outweigh the costs. With a high paying career where a college education is necessary, paying off student loans is no problem. On the other hand, people who go after low paying careers that don’t necessarily need a college degrees,
Most people today accept the debt that comes from college. Students consider student loan debt as a “good debt.” They see other students make this mistake but follow their path anyway. Nearly 80% of college-bound students have not projected the total amount of money they will need to graduate college.
Finances play a part in everyone’s lives. According to critics, the generation of Millennials have not been the most accomplished in this area. However, new information is on the rise, and it shows that Millennials are becoming more financially stable. The generation of Millennials is a broad group. The group of Millennials associated in this discussion are from the beginning of the Millennial generation, which are those born between the 1980s and 1990s. The Millennials generation itself ranges from the 1980s to 2004. After the Great Recession, the older generation of Millennials had a massive setback with financial security. Since then, Millennials have always been known for having poor finances by critics. Millennials may not
Millennials are well on their way to redefining the “American Dream.” In a world where they have to constantly exercise critical thinking to financially survive the debts the average Millennial life incurs, suggesting that their reluctance to fall into the status quo will hurt them is a stagnant, inflexible view. It only hurts those entrenched in a narrow worldview limited to one accepted lifestyle and standard of living. To this life, Millennials are thoroughly disillusioned. They’re causing all these economic ‘problems’ because they aren’t buying into the hazy suburban complacency that the traditional dream represents. It’s not just that it costs too much to get there, it’s mostly that it’s hardly achievable. Contemporary high school is less of a system for education as it is an Olympic triathlon. Students must jump through every well-nigh arbitrary hoop, competing against each other for the most scholarship money based on the right opinion said in the right words. Who was in the most meaningless clubs at the same time? Who happened to attend a school with the most extra-curricular activities or AP courses? When school – that
When young adults complete high school they’re encouraged to enroll in a higher education program. With the constant talks of soaring tuition costs, in addition to the massive student loan debt, taking this step can be worrisome. Reyna Gobel, a journalist on financing college education and repaying student debt, states. “It’s easy to stop believing that a college education is worth it when the nation has over a trillion dollars in debt, but college graduates still earn more over a lifetime than those without a degree. Plus, they’re more employable.” More than three-quarters of all college graduates agree that higher education is indeed still worth the cost. Additional education in a field you’re passionate towards
In that year, the number of college graduates was only 432,058 (Sourmaidis) and ever since the demand continually increased as did price. This trend allowed for the student loan crisis to occur, which is a problem we face today. As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements).
Everyone knows that going to college and getting a degree is the most effective and guaranteed route to ensure a prosperous financial future, right? College is considered by most to be the best investment you can make in life, but what happens when that investment leaves you drowning in thousands of dollars in debt right after graduation day. This is the situation that millions of college graduates are faced with in 2016. Rising college tuition perpetuates student debt and is on a sharp incline and it seems to have no ambition of ever slowing down. The effect of this catastrophe is felt by millions of families across the country who now question, “is college really worth it?”
Over the past decade, it has become evident to the students of the United States that in order to attain a well paying job they must seek a higher education. The higher education, usually a college or university, is practically required in order to succeed. To be able to attend these schools and receive a degree in a specific field it means money, and often a lot of it. For students, the need for a degree is strong, but the cost of going to college may stand in the way of a successful future. Each year the expense of college rises, resulting in the need for students to take out loans. Many students expect to immediately get a job after graduation, however, in more recent years the chances for college graduates to get a well paying job isn’t nearly as high as it used to be. Because students can no longer depend on getting a job fresh out of college, it has become harder to repay the loans. Without a steady income, these individuals have gone into debt and frequently default loans. If nothing is done to stop colleges and universities from increasing the cost of attending their school, the amount of time it takes for students to pay off their loans will become longer and longer. The extreme expenses to attend a college or university may leave a student in financial distress: which may ultimately lead to hardship in creating a living for them and affect the country’s economy.
One major reason millenials are not projected to do as well as the current Generation X is a financial one. According to David Leonhardt of the New York Times, “The typical American household made less money last year than the typical household made a full decade ago,” while the “median household [income] fell to $50,303 last year [2009] from $52,163 in 2007.” (Leonhardt, par 1-2). This is a major problem, considering the cost of living and inflation are continuously on the rise. Millenials are the most educated generation in American History. This may sound like a fantastic prospect for the future; however, the average debt for graduates of public (notice this is not a statistic for private schools, which are even more costly) universities doubled between 1996 and 2006. In f...
Being forced to move back home after college graduation is one of many obstacles students face while getting accustomed to the new debt they inherit after school. Imagine, upon graduation of high school the excitement one must feel about finally being away from the watchful eye of mama and papa bird. Headed to college to live on their own, freedom to be an adult and make decisions as such. If lucky enough to be one of the one’s who will make it through the entire four years of higher learning with a degree, evidence of long nights, dedication, and hard work, great rewards are expected, right? Wrong, many students in modern society will be met with a harsh reality and be bound to the nest which they took flight from four years prior. Student loans will become the new chain holding them captive to their parents. Unable to afford to live independently right after college graduation is a price some must pay for pursuing higher education.
It is not very often that a common ground is not established when on the combined subjects of Millennials and entitlement. Some believe that the blame for entitled Millennials should be placed on Millennials themselves while others believe that the blame should be placed on society and those surrounding Millennials. A stereotypical Millennial
“Is College Worth it? Clearly, New Data Says” by David Leonhardt, “The Value of a College Degree” by Emily Hanford, “New study shows the value of a college education” by Hope Yen, and “Is College Worth It Anymore” by Kristen Sturt, all primarily discuss the advantages of a college education and its true value. In the United States, the student debt is over $1.2 trillion dollars. It is the second largest cause of debt following mortgage debt. When the media spends so much time talking about the limitations of a college education, they are discouraging some students from attending college. Regardless of all the debt, attending college and attaining a higher education is the best decision a student pursuing a bright future, could make today.
Individuals in my generation that decide to go away for college may graduate with a degree but they also graduate with debt and have a hard time finding work in their area of study. College graduates are young and many may not have much experience in their field. It is a bittersweet option to go to college and further your education, I am all for it, but I am not for getting yourself in tons of debt, that will cause you to live your whole life paying off student loans and such. Which is one of the reasons why I chose to stay at home and go to community college, I’m saving money while still getting a great education. In earlier generations, people may not have felt that college was important because they needed a job to support themselves and their families. That is understandable because in the early years becoming an adult meant turning of age, 18, getting a job, moving out and starting your own family, but now turning 18 doesn’t mean you automatically are an adult and can move out and start your own life, I have friends that went to college, have a job but still are not able to move out on their own even in their