If you're part of the millennial generation, your financial
life is probably no walk down easy street.
A new study by the FINRA Investor Education Foundation, "The
Financial Capability of Young Adults -- A Generational View,"
reveals that millennials -- those 18 to 34 -- show concern about
their debt, engage in problematic financial behaviors, and
display low levels of financial literacy.
Survey results paint a troubling financial portrait of the
- Almost half (46%) of millennials are concerned they have
too much debt. This is slightly less but on par with Gen Xers
(50%). But it's much higher than the 38% of baby boomers and
23% of respondents from the Silent Generation who feel they
have too much debt.
- Forty-three percent of millennials engaged in costly
non-bank forms of borrowing in the past five years, like using
pawn shops and payday lenders. By contrast, 21% of boomers and
8% of the Silent Generation used non-bank forms of
Recent economic events play a role in the millennial
generation's financial struggle. Many millennials began their
adult lives in the midst of the worst economic downturn in
generations, and this survey reveals just how difficult coming of
age in the midst of the Great Recession has been for this
generation of Americans.
Millennials and financial literacy
In addition, low levels of financial literacy hamper most
millennials. Only 24% of millennials were able to answer four or
five questions on a five-question financial literacy
And among young millennials -- those 18 to 26 -- only 18% were
able to answer four or five questions correctly.
Somewhat surprisingly, "The Financial Capability of Young
Adults" also found that despite the higher financial strain that
millennials face, they express levels of financial satisfaction
that are on par with Gen Xers and boomers.
For more information about saving and investing, go
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role is to protect investors by maintaining the fairness of the
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