I found this article this morning (click on "this article" to read). It caught my attention because it included statistics on the net worth of "millennials", or those currently between the ages of 25-34. I find myself on the outer threshold of this group, as I'm still 34 for a couple more months.
It was interesting to compare young adult's asset to debt situation now (or 2016 in the article), compared to 27 years ago. The situation is most startling for today's young adults with a college degree, but who also have debt.
I will state that while I think the current student loan debt situation is a terrible crisis, I find it hard to remove the layer of personal responsibility that is partially at play here. Going to college has always been a choice, and while the cost of higher education is absolutely ridiculous, parents and prospective students have to shoulder some of the responsibility because of the amount of poor planning involved on the front end. I wish I had the support structure and knowledge at the time to better plan my future and college education, as I let life momentum and personal interests dictate how I used my $26,000 in student loans. I will have a hard time supporting the girls going to college unless they have a solid plan. It will be hard to not nudge them towards community colleges, or an entry level job in a field THEY THINK they'd be interested in (attempting to make this decision at 18 is probably a waste of time). Too many kids go to school for the social attractions.
According to the article, student loans accounted for 10% of the debt load for 25-34 year olds in the "college degrees with debt" group back in 1989. In 2016, it was 74%. Additionally, their net worth was measured at $90,000 in 1989, compared to -$1,900 in 2016. Let that sink in.
I'd estimate that upon graduating, my student loans were probably 80% of my total debt load, while today the remaining balance is closer to 9%. My net worth (all assets-all debt) was in the negative until I climbed out of that situation just last year. Seeing this number continually improve on my spreadsheet has to be the most rewarding and motivating thing of this journey. I wonder how many of my peers even know what their number is. I'd suggest figuring it out.
When comparing the net worth of groups "with college degrees and debt" against those "without college degrees" in 2016, the net worth of those without college degrees was an average of $7900. The group without college degrees, on average, is close to $10,000 ahead of their peers who did get a college degree w/debt. Remember, this is an average of those between the ages of 25-34.
This isn't an indictment on going to college, or supporting an idea of not going to college. This will continue to be a personal choice for everyone as they consider their future. Education can be seen as a long term investment, and comparing older age brackets with college degrees would probably paint a different picture when considering net worth (hopefully!!).
Knowing your net worth can help you plan for your future. It's never too late to start a plan to get your finances in order, and start saving for a future that you want.
One cartoon that made me laugh when I saw it a few years ago was the one below. When everything is stripped away, you just never know.
It was interesting to compare young adult's asset to debt situation now (or 2016 in the article), compared to 27 years ago. The situation is most startling for today's young adults with a college degree, but who also have debt.
I will state that while I think the current student loan debt situation is a terrible crisis, I find it hard to remove the layer of personal responsibility that is partially at play here. Going to college has always been a choice, and while the cost of higher education is absolutely ridiculous, parents and prospective students have to shoulder some of the responsibility because of the amount of poor planning involved on the front end. I wish I had the support structure and knowledge at the time to better plan my future and college education, as I let life momentum and personal interests dictate how I used my $26,000 in student loans. I will have a hard time supporting the girls going to college unless they have a solid plan. It will be hard to not nudge them towards community colleges, or an entry level job in a field THEY THINK they'd be interested in (attempting to make this decision at 18 is probably a waste of time). Too many kids go to school for the social attractions.
According to the article, student loans accounted for 10% of the debt load for 25-34 year olds in the "college degrees with debt" group back in 1989. In 2016, it was 74%. Additionally, their net worth was measured at $90,000 in 1989, compared to -$1,900 in 2016. Let that sink in.
I'd estimate that upon graduating, my student loans were probably 80% of my total debt load, while today the remaining balance is closer to 9%. My net worth (all assets-all debt) was in the negative until I climbed out of that situation just last year. Seeing this number continually improve on my spreadsheet has to be the most rewarding and motivating thing of this journey. I wonder how many of my peers even know what their number is. I'd suggest figuring it out.
When comparing the net worth of groups "with college degrees and debt" against those "without college degrees" in 2016, the net worth of those without college degrees was an average of $7900. The group without college degrees, on average, is close to $10,000 ahead of their peers who did get a college degree w/debt. Remember, this is an average of those between the ages of 25-34.
This isn't an indictment on going to college, or supporting an idea of not going to college. This will continue to be a personal choice for everyone as they consider their future. Education can be seen as a long term investment, and comparing older age brackets with college degrees would probably paint a different picture when considering net worth (hopefully!!).
Knowing your net worth can help you plan for your future. It's never too late to start a plan to get your finances in order, and start saving for a future that you want.
One cartoon that made me laugh when I saw it a few years ago was the one below. When everything is stripped away, you just never know.
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| wrongwaycomics.com |
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