According to a report, Young People: Living on the Edge, released by the financial advocacy group Qvisory, adults ages 18-34 are not seeing increases in their incomes, but are seeing higher expenses and more debt.
In last year’s survey, 44% of young adults said finances were their greatest concern. In this year’s survey, 55% of young people said finances and the current economic conditions were their greatest worries — “they do not believe they have enough money to keep pace with the cost of living,” the report says.
Other findings included:
*65% of respondents know somebody who is in a financial crisis or unable to pay bills
*19% have had their phone, cable, or utilities cut off because they could not pay the bill
*66% of respondents have credit cards
*More than 50% have credit card debt
*57% of respondents only make minimum credit card payments
*36% have paid a late fee on a credit card
*62% of respondents with credit card debt have three or more kinds of debt
Excluding student loans, 44% of young people are more than $5,000 in debt
22% are more than $10,000 in debt
(Report statistics taken from
www.moneyunder30.com)
The Solutions:
* Pay more than the minimum balance on your credit cards, especially store-branded cards (like Express or Footlocker).
* Do not pay for unnecessary items (luxuries...like some Louboutin's to go to Baja's in!) on your credit card! If you want to buy a 42-inch plasma screen TV, save up for it!
*Even if it's a small amount, save some money from every paycheck (automatically, if possible) for when you finally realize the difference between "making it rain" and "rainy days!!"
* If you have extra money to spend...invest it instead! Talk with a financial investment counselor or even a local credit union to find out about investment options!
* Don't live beyond your means. If you can't afford to pay for it in full then approach it like your grandparents did...just don't buy it! We all want to have that star-status look, but at what price?
*When you do spend your money, do it wisely! Look for sales, clearances, coupons and discounts on the things you need, like groceries or gas. When back to school shopping, try Plato's Closet or Cititrends for deep discounts on fly fashion!
* Realize that the economy is changing and right now, jobs are scarcer and money's tighter! You can still look good and live a comfortable life, but don't go into debt doing it!
Let's build wealth!
SUPPORTED SITES 