Planning for the younger generations and the young at heart

Overall financial wellness is always at the forefront of what we do but one can’t help but be concerned about the financial status of many of our fellow Americans as a result of COVID- 19. Although statistics can certainly be skewed to help an argument, ultimately the results can be clearly seen in the overall consumer debt burden in our country. Credit card debt has continued to grow across the Millennial, Gen X, & Baby Boomer generations since the start of the pandemic but the Millennials are experiencing a “greater financial impact” according to one USA Today article. The impact is further enhanced by the fact that this generation “trailed in wealth creation” prior to the pandemic. Here are some statistics from credible sources that can seem a bit overwhelming.

  • “The average American millennial makes $35,592 a year”
  • “American millennials have an average net worth of less than $8,000”
  • “Millennials in the graduating class of 2018 have an average student-loan debt of $29,800”
  • “About 37% of millennials receive money on a monthly basis (from a parent, guardian, or family member), and more than half (59%) receive money several times a year”

There are a couple of honorable points of interest too. Many millennials are contributing to a retirement plan and many want to be debt free. Most have a great interest in their overall financial wellness but simply don’t know how to get a fresh start in the right direction.

In summary, although salaries are not keeping up with inflation, housing and college tuition are much more expensive today than in previous generations. Furthermore with the increase in credit card and student loan debt, it’s very difficult to contribute to a solid savings plan, let alone 6- 12 months of emergency reserve. But even with these challenges, millennials have the wherewithal to overcome them and what we have learned in the last 10 years is that this particular generation has some very unique circumstances that have never been experienced by prior generations. So in order to fully understand and address their concerns appropriately, we created our latest platform: FRE$H HEIR to further educate and provide guidance during a stage in life where things can seem most vulnerable.

FRE$H HEIR focuses on all things financial for our younger (and young at heart) generation of clients and prospective clients, with the goal of being intentional in meeting their needs, exceeding their expectations, and adding value to their lives. Stephen G Duckett, our Associate Advisor (and proud millennial planner), will continue ongoing dialogue to help you navigate the difficult terrain and/ or confirm that you are on the right track.
And stay tuned for more information from the FRE$H HEIR platform and blog that Stephen will be leading.

If we can help you with a more specific question, don’t hesitate to reach out to us.

Business Insider: Meet the average American millennial, who has an $8,000 net worth, is delaying life milestones because of student-loan debt, and still relies on parents for money-Hillary Hoffower
USA TODAY: Facing a double-whammy, millennials rack up credit card debt during the pandemic”- Aimee Picchi