The Pressures of Life Americans Born After 1980 Face
Published in Sina
(China) on 3 February 2014
by Lei Qiao (link to original)
(China) on 3 February 2014
by Lei Qiao (link to original)
Translated from
by Jingwei Qian.
Edited by Bora Mici.
Americans born after 1980 are also known as the millennial generation. Some of them are studying, while some have stepped into society and started their new life. What pressures in life do Americans born after 1980 face? Surveys show that lack of financial security tops the list. In other words, they cannot be financially independent completely. Approximately 23 percent of young people believe it quite difficult to be with no shortage of money for living: It is not easy to earn money, even harder to save money, and debts suck. Also, 7 percent, especially university or college students, are unsure whether they could find an ideal job. They are worried about unemployment once they graduate in the weak job market, and 15 percent of young people are very anxious at the thought of their debts. Education loans have become one of the biggest burdens for young people.
Fortunately, young people are hopeful and optimistic about their life and future, although their life is far from satisfactory and full of troubles now. Everybody has to experience some hardships and setbacks in the path of life. Surveys show that 75 percent of young people are optimistic that they can pay off debts soon. One does not fear debt, but the inability to pay off debt. Also, 73 percent of young people are optimistic about their future private and family financial conditions. They can have deep pockets by earning more and spending less, and thus life will become better. As for career and jobs, 73 percent of young people think they have found or will find an ideal and satisfactory job. As employed workers, young people have to be concerned about what they go in for and how much they are paid, which is bound to directly influence income and family economic conditions. Graduates from good majors can have an annual income from $50,000-$100,000 from their jobs. With this income, they can be counted as middle-class families. As for old-age security, 62 percent of young people are confident that they can save enough for a pension. This is a good signal. After all, the earlier they start pension savings, the better it would be. Old-age security will not be a big problem after decades, if young people set up retirement saving accounts once they begin to work. Besides, 57 percent of young people are full of confidence in wealth growth through investment because the best asset of young people is time, not the scale of capital. Therefore, young people, who are more adventurous in investment, would have more of a chance in making profits.
Americans born after 1980 are more willing to work hard to reduce debt than the older generation, but it does not necessarily mean they can save more money. Some young people say their savings have declined by 6 percent since 2011. The phenomenon could be explained by the economic recession, slowly increasing income and comparatively low salaries when this generation embarks on a career. Saving money is arduous.
Although Americans born after 1980 are faced with enormous economic pressure after stepping into society, they have confidence in family financial security. Surveys show that 74 percent of young people believe they will have housing before they turn 35 through hard work. Young people also believe in their capacity for amassing fortune and retirement security. Two-thirds of young people say they will retire at the age of 65 or earlier, rather than at 70 or 80, clamored by many people. In addition, 62 percent of young people have self-employment in mind. They want to start their own business rather than just work for others throughout their life.
Although young people have these life goals, only 11 percent of them have regular savings for housing, 4 percent are saving money for self-employment and 9 percent are saving for getting married and having a family. Besides, only 6 percent of young people have begun to save money for retirement. Most young people start saving money for contingencies. Experts indicate that young people do not have enough money for personal finances at all, and it is almost impossible to have savings while paying debt.
When facing economic hardships, the young millennial generation is more likely to move back home and live with parents than older generations. Currently, most young people are taking low-paying jobs or part-time jobs without a 401(K) retirement plan or any other welfare. Low-cost mortgages led to rising housing prices and higher rents, so that the millennial generation can hardly afford itself. Of course, there are many other factors: for example, insufficient supply in the job market. It is reasonable that they are incapable of meeting financial goals. It is not easy to save while paying debt.
Americans born after 1980 have attitudes toward life that have changed much, but still face challenges in achieving financial independence. Among those who received a university education, aged 20 to 29, 23 percent of females think they have completely achieved financial independence, while only 17 percent of males think they have achieved financial independence. Surveys show that only 17 percent of those aged between 20 and 29 think they have realized the goal of establishing good personal finances in 2013 and 19 percent think they are making steady progress toward the goal, while up to 58 percent think they are too far away from the goal and have to put in a great deal of effort.
How can we understand financial independence? "Gnawing on the old" is not financial independence, and neither are those who rely on parents to make a down payment on housing. Americans born after 1980 draw conclusions on many aspects of financial independence. Let us have a look at some major points. Among young people aged 20 to 29, 78 percent consider being able to afford all living expenses as financial independence. Common sense tells us this is true. It is typical financial independence if they do not lack money for living, no longer rely on parents and support themselves and their families with their earnings. And 59 percent think of finding a full-time job in their professional field as financial independence. As university graduates, they will have income security by taking a job in their professional field. At least, they will no longer "gnaw on the old."
Also, 55 percent of young people think of moving out of their parents' house and living independently as financial independence. This makes sense because independent living requires income and the ability to afford oneself. Besides, 48 percent of young people consider possessing housing as financial independence. This criterion is quite utilitarian and not easy to meet. Not only do they need to buy housing, but they also need to buy housing completely on their own. They should have steady income and some savings. They have to stay economically independent while buying housing.
In addition, 47 percent of young people think that they are financially independent if they get married and have a partner. It is hard to find a spouse with little money or little income. No one wants to marry a poor man. From this perspective, males have greater pressure than females.
There are 44 percent of young people who seem to reach a bit beyond their grasp. They think they are financially independent only if they have enough retirement savings. In other words, they need to ensure no shortage of money when getting old, apart from current daily expenses. In contrast, 41 percent are not too ambitious. They think they would be freed and liberated if they can just pay off their student loans. Student loans seem to have exerted more than a little pressure on young American people.
This article does not represent Sina’s stance, but only represents the author’s opinion.
Fortunately, young people are hopeful and optimistic about their life and future, although their life is far from satisfactory and full of troubles now. Everybody has to experience some hardships and setbacks in the path of life. Surveys show that 75 percent of young people are optimistic that they can pay off debts soon. One does not fear debt, but the inability to pay off debt. Also, 73 percent of young people are optimistic about their future private and family financial conditions. They can have deep pockets by earning more and spending less, and thus life will become better. As for career and jobs, 73 percent of young people think they have found or will find an ideal and satisfactory job. As employed workers, young people have to be concerned about what they go in for and how much they are paid, which is bound to directly influence income and family economic conditions. Graduates from good majors can have an annual income from $50,000-$100,000 from their jobs. With this income, they can be counted as middle-class families. As for old-age security, 62 percent of young people are confident that they can save enough for a pension. This is a good signal. After all, the earlier they start pension savings, the better it would be. Old-age security will not be a big problem after decades, if young people set up retirement saving accounts once they begin to work. Besides, 57 percent of young people are full of confidence in wealth growth through investment because the best asset of young people is time, not the scale of capital. Therefore, young people, who are more adventurous in investment, would have more of a chance in making profits.
Americans born after 1980 are more willing to work hard to reduce debt than the older generation, but it does not necessarily mean they can save more money. Some young people say their savings have declined by 6 percent since 2011. The phenomenon could be explained by the economic recession, slowly increasing income and comparatively low salaries when this generation embarks on a career. Saving money is arduous.
Although Americans born after 1980 are faced with enormous economic pressure after stepping into society, they have confidence in family financial security. Surveys show that 74 percent of young people believe they will have housing before they turn 35 through hard work. Young people also believe in their capacity for amassing fortune and retirement security. Two-thirds of young people say they will retire at the age of 65 or earlier, rather than at 70 or 80, clamored by many people. In addition, 62 percent of young people have self-employment in mind. They want to start their own business rather than just work for others throughout their life.
Although young people have these life goals, only 11 percent of them have regular savings for housing, 4 percent are saving money for self-employment and 9 percent are saving for getting married and having a family. Besides, only 6 percent of young people have begun to save money for retirement. Most young people start saving money for contingencies. Experts indicate that young people do not have enough money for personal finances at all, and it is almost impossible to have savings while paying debt.
When facing economic hardships, the young millennial generation is more likely to move back home and live with parents than older generations. Currently, most young people are taking low-paying jobs or part-time jobs without a 401(K) retirement plan or any other welfare. Low-cost mortgages led to rising housing prices and higher rents, so that the millennial generation can hardly afford itself. Of course, there are many other factors: for example, insufficient supply in the job market. It is reasonable that they are incapable of meeting financial goals. It is not easy to save while paying debt.
Americans born after 1980 have attitudes toward life that have changed much, but still face challenges in achieving financial independence. Among those who received a university education, aged 20 to 29, 23 percent of females think they have completely achieved financial independence, while only 17 percent of males think they have achieved financial independence. Surveys show that only 17 percent of those aged between 20 and 29 think they have realized the goal of establishing good personal finances in 2013 and 19 percent think they are making steady progress toward the goal, while up to 58 percent think they are too far away from the goal and have to put in a great deal of effort.
How can we understand financial independence? "Gnawing on the old" is not financial independence, and neither are those who rely on parents to make a down payment on housing. Americans born after 1980 draw conclusions on many aspects of financial independence. Let us have a look at some major points. Among young people aged 20 to 29, 78 percent consider being able to afford all living expenses as financial independence. Common sense tells us this is true. It is typical financial independence if they do not lack money for living, no longer rely on parents and support themselves and their families with their earnings. And 59 percent think of finding a full-time job in their professional field as financial independence. As university graduates, they will have income security by taking a job in their professional field. At least, they will no longer "gnaw on the old."
Also, 55 percent of young people think of moving out of their parents' house and living independently as financial independence. This makes sense because independent living requires income and the ability to afford oneself. Besides, 48 percent of young people consider possessing housing as financial independence. This criterion is quite utilitarian and not easy to meet. Not only do they need to buy housing, but they also need to buy housing completely on their own. They should have steady income and some savings. They have to stay economically independent while buying housing.
In addition, 47 percent of young people think that they are financially independent if they get married and have a partner. It is hard to find a spouse with little money or little income. No one wants to marry a poor man. From this perspective, males have greater pressure than females.
There are 44 percent of young people who seem to reach a bit beyond their grasp. They think they are financially independent only if they have enough retirement savings. In other words, they need to ensure no shortage of money when getting old, apart from current daily expenses. In contrast, 41 percent are not too ambitious. They think they would be freed and liberated if they can just pay off their student loans. Student loans seem to have exerted more than a little pressure on young American people.
This article does not represent Sina’s stance, but only represents the author’s opinion.
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