It seems Americans under age 35 are not saving money. No, in reality, they are spending more than they have.
On a brighter note, those ages 35 to 44 have a positive savings rate.
But what about those "millennials" ... what is up with that?
This was the subject of a recent article on the CNN website, titled “Millennials aren't saving a dime.” The article reports that most millennials are in trouble even though the job market (apparently) looks brighter. The unemployment rate was down to 5.8% last month and the U.S. economy added 214,000 jobs.
However, wages have remained flat without much increase since back in the 1990s.
Consequently, even with "good news" about jobs and the low unemployment rate, millennials continue to have a rough time making ends meet.
In addition, another negative factor is their student loan debts.
The original article explains that things were a lot worse just a few years back.
Moody's reported that millennials had a negative savings rate from 2004 to 2009, and in 2007 they hit rock bottom with a deficit of about 15%. They recovered in 2009 and were treading water until 2012, when they again went under.
Many college-educated millennials have been fortunate to land professional jobs, but they have limited upward mobility because some baby boomers above them are facing similar money crunches and are not retiring early.
Aside from savings and basic financial planning, once adulthood is reached estate planning should be a part of everyone’s budget.
While that sounds like a very self-serving pitch (as I am, yes, you guessed it ... an estate planning attorney), everyone age 18 and older needs to at least have a "general durable power of attorney" and an "advance healthcare directive" whether single or married.
Accordingly, consult an experienced estate planning attorney and see what you can do, even with limited finances (I bet your folks would help out with this necessity), to save and plan for the future of your estate.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: CNN (November 10, 2014) “Millennials aren't saving a dime”