NEW YORK, Dec. 10, 2019 /PRNewswire/ -- Today, The
Balance (https://www.thebalance.com), one of the world's largest
personal finance websites, announced the findings from its Affluent
Millennial Money Study, which found that 86 percent of affluent
millennials consider being debt-free as a marker of personal
success, yet more than 50 percent don't pay off their credit card
bills each month.
In partnership with Chirp Research, the nationwide study
targeted millennials with an average household income (HHI) of
$132,000 to understand how they view
credit and debt, along with details on how they learned about money
and how that education influences where they spend, save, and
invest.
"As spending peaks around the holidays, it's important to
remember that it's rarely—if ever—a good idea to take on credit
card debt, and the disconnect is likely a result of the widespread
misconception that carrying a credit card balance helps your credit
score, when it actually doesn't," said Christine DiGangi, Editorial Director at The
Balance. "The good news is there's a huge opportunity to help
people better understand their money, and they have ample time to
correct their perceptions of debt."
Other key findings from the study include:
Millennials Are Carrying Debt And Not Paying It Off:
- Nearly 90% report currently holding debt.
-
- More than half (51%) carry mortgage debt, followed by credit
card bills (50%), car loans (46%), student loans (39%), personal
loans (21%), and medical debt (18%).
- On average, affluent millennials spend over 17% of their
personal income on debt repayment, second only to their fixed
expenses like rent, utilities, and food (40%).
- Despite that, debt repayment comes in sixth in the list of top
financial priorities, behind paying bills (88%), feeling
financially secure (87%), being responsible with the money they
have (85%), living comfortably (81%), and saving for retirement
(79%).
Consequences of Poor Financial Education:
- Affluent millennials who report high financial anxiety, are
more likely to have credit card debt than their financially
confident counterparts (69% vs 42%).
- Conversely, affluent millennials who said they are confident
about their finances are 5X as likely to be debt-free.
- 32% report that financial insecurity causes them to avoid
socializing, and 28% fear they will never get out of debt or
achieve financial security.
"The findings demonstrate the powerful connection between
financial literacy and the confidence to make good decisions with
money," said Dr. Joetta Gobell, Vice
President of Research and Insights at Dotdash, The Balance's parent
company. "Young adults need to understand that connection, and be
able to confidently manage their finances while responsibly
managing their debt."
To learn more about the Affluent Millennial Money Study, please
visit here.
About The Balance
The Balance family of brands,
including The Balance, The Balance Careers, and The Balance Small
Business, deliver clear, practical, and straightforward personal
financial advice to over 20 million people each month. The Balance
is part of the Dotdash family of brands.
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SOURCE The Balance