Millennials Are Experiencing Financial Burnout. Here's Why.
Millennials, ages 24 to 39, are experiencing extreme burnout, which can manifest in various forms like anxiety and depression. The number one cause of this burnout is money. Millennials are more likely to stress about the state of their finances than any other generation. The stress surrounding money can come from student loan debt, lack of job opportunities, and the pressures due to social media- just to name a few.
Below are some potential solutions for common financial burnouts.
Financial Burnout #1:
Overwhelmed with Student Loan Debt
Roughly 70% of all college attendees take out loans to get through school. Of those students who had to take out loans, after graduating, the average student is $31,172 in student loan debt. Although debt can feel like a financial burden, there are ways to decrease the amount of debt you owe through student loan forgiveness programs and state-sponsored programs.
Two tips to calm your nerves regarding your student loan debt:
1. Use your grace period wisely. A grace period temporarily pauses your student loan payment for six to nine months, depending on who the loan provider is. Use this time to understand where your loans are coming from and create a plan to pay them back.
2. Pick a student loan payback option. Create a plan to tackle your student loan debt. Talk to your student loan provider and explain your financial situation. Do not ignore your student loan debt. This will cause your student loans to grow at an uncontrollable rate due to the interest attached and could stress you out even more.
Financial Burnout #2:
Keeping Up With The Social Media Crowd
Social media can feel like an online world full of perfect lives and perfect bank accounts. Millennials are increasing their spending habits to support their fictitious lifestyles, but the downfall is that impressing others can lead to more debt. A solution to decrease unnecessary spending is to live below your means. Focus on items that you need, like groceries, rent, and clothing.
Four ways you can live below your means:
1. Track every dollar.
2. Cut out unnecessary expenses.
3. Save 10% (or more) per paycheck first.
4. Pay down debt.
If you are experiencing financial burnout, then you aren’t alone. The CapWay team is on your side when it comes to learning how you can better handle your finances. If you need additional resources, click here to request content, and we’ll be happy to guide you.