Younger Americans face a financial crisis. Their growing debt burden has far outpaced that of older generations, and it’s only getting worse. Generation Z is being hit the hardest, thanks to lower income and the rising cost of everything from food to housing. Bloomberg takes a look at the roots of this problem, and whether anything can be done.
00:00 – 00:54 Introduction to a growing debt problem
00:55 – 03:44 Income and inflation
03:45 – 05:42 Housing costs
05:43 – 07:48 Education and tuition costs
07:49 – 10:37 Doom spending
10:38 – 11:30 What does the future hold for young people?
Read more: How Gen Z Ended Up in So Much Debt ???? https://www.bloomberg.com/news/features/2024-10-31/why-gen-z-is-sinking-deeper-into-debt-explained
Young Americans today face a serious debt crisis. And it’s making the American Dream seem more like an illusion.
Both Gen Zers and younger millennials were hit by a nasty one-two punch — the Covid-19 pandemic and then the worst inflation in decades — at critical points in their financial journeys. Now, those aged 18 to 29 are carrying $1.12 trillion of debt, according to the Federal Reserve Bank of New York. While that only makes up 6.3% of the total $17.8 trillion in US consumer debt, it’s still a huge burden to carry at an early point in their financial development.
Such an enormous debt burden has contributed to financial pessimism among young adults that’s changing how they work and spend money, key shifts that may have implications for not just their future finances, but also the broader US economy.
#Debt #Economy #Business
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That's what happen on a wild capitalism economy…. Rich are richer, poor are poorer.
There is no right to have a House, Education and Health, while in the most of the other countries this are basic rights! not merchancy.
It's sad to see how families can bekome homeless just by getting sick…
The rich have been able to continuously grab more and more of created wealth
Greedy US banks
Rich parents pay for their sorry kids school and the majority of the time they waste it with a degree that isn't worth anything. They also help pay for their house. The talent in this country is usually people that didn't have wealthy parents. If the playing field was ever leveled the wealthy kids wouldn't have a prayer and their parents know that
Income inequality in the US has been astronomical and only gotten worse over the decades.
Plus social mobility in the US is poor. The income class you’re born into is likely what you’ll die in.
I didn’t have a car for four years of college. Didn’t buy my first home until I was 35. I’m sick of this whining. We had it rough in the 70’s too, then we also got drafted. I know what will fix this, ban abortion and all forms of birth control. Don’t go to college unless you have a guaranteed job, period. That means almost all college degrees are worthless. Doom spending?
In the UK, student loan tax doesn't get deducted on the first 20k each year, allowing for a base living. The US version is quite sinister, it deductes the student loan tax on the gross amount. This leaves Americans in a hard place or worse destitute. That's outrageous.
Learn a trade instead of going to college. We desperately need more plumbers, electricians, mechanics, carpenters.
as a millennium, fortunately, my family supports me a lot: in particular, they help me a lot in purchasing the house
because automation is making capitalism obsolete
Stop wearing that garbage on your face, behave professional, you are not owed anything because you went and got a masters degree, exceed in your work, and always remember that you don’t know what anxiety inducing situations are if you are able to feed yourself. Im in the age range these people are and don’t share this Bull Sh*t view on life.
I just finished undergrad at 26 finally with very little debt thanks to the state of California. However the job market is BRUTAL
So… what's the solution??
I did my MBA during Covid and the entire program from a state school was less than $20k. I have no idea how that guy racked up $150k in student loans???
What school charges $90K/yr in tuition? Medical school at my state university isn't even half that for in-state students.
all i hear are lazy excuses
Please tell me that 90k is a post graduate program and not undergraduate studies. Because thats insane otherwise
Millennial chiming in. We had fake universities that closed before we graduated and the financial downturn that deleted so many jobs and literally moved the goal post with hiring. They said we needed a bachelors degree then changed it to a masters. It was crazy. Seems like every generation gets some sort of crazy curve ball. Seems planned against us all.
I am a little worried about Doom Spending. It sounds like the young may not pay off the debt they accumulate.
29.99% APR is criminal.
I am thankful that my parents made the decision to send me out of state to a state college in the Midwest. Total cost of my entire tuition being under $80k including scholarship. I majored in a STEM degree and am two years out of college making nearly 2.5x the average American income.
imagine in what debt will gen alpha be
Learn about bitcoin.
If you're going to talk about how big and serious this problem is, don't interview children that don't understand that they shouldn't be spending $90,000 a year in college.