ST. LOUIS–Millennials may have entered adulthood as the most educated generation in American history, but they’re going to need “every bit of brainpower to overcome unprecedented levels of debt,” according to a new analysis.
A report released by Real Estate Witch has found about 90% of Millennials have some form of non-mortgage debt, with an average balance of $90,590, according to its new survey of 1,000 Millennials.
Real Estate Witch reported student loans make up a disproportionate share of that sum, with the average Millennial in 2023 owing $56,538 in student loans.
The survey found about 70% of Millennials live paycheck to paycheck, with most saying they struggle to afford bills (56%) and nearly half saying they struggle to afford housing (47%).
“The results illustrate how unlucky Millennials — born from 1981 to 1996 — have been,” Real Estate Witch reported. “Compared to Baby Boomers, who were born from 1946 to 1964, Millennials have faced lower earnings, higher housing prices, and a less reliable job market. “At the same time, Millennials admit they’re somewhat complicit in undermining their financial security. Nearly 51% regret not saving enough money, and many dine out (59%) or make impulse purchases (44%) at least once a week.”
The Findings
According to Real Estate Witch, additional findings from its survey include:
- 57% of Millennials have credit card debt, with an average balance of $8,463 — an increase of about $3,000 from 2022.
- 25% of Millennials owe money on student loans, with an average balance of $56,538.
- 86% of Millennials say a major life event, such as a medical emergency (42%) or job loss (31%), contributed to them going into debt.
- 36% of Millennials say their debt puts them at risk of bankruptcy.
- 70% of Millennials live paycheck to paycheck, including 74% of millennial women.
- 56% of Millennials say they struggle to afford bills, and 47% struggle to afford housing.
- 44% of Millennials say they cannot afford a $500 expense out of pocket, including 49% of millennial women.
- The average Millennial has $42,948 in savings — about $6,500 less than they had in 2022.
- The typical Millennial makes $74,106 per year but says they need $119,406 to live comfortably.
- Just 27% of Millennials say they’re doing better than their parents were at their age.
- 96% of Millennials have financial regrets, with the most common being not saving enough money (51%) and going into debt (34%).
- 53% of Millennials say it’s impossible not to have any debt.
The full report can be found here.
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