{"id":74937,"date":"2020-07-13T18:38:03","date_gmt":"2020-07-13T18:38:03","guid":{"rendered":"https:\/\/essays.homeworkacetutors.com\/wealth-opportunities-for-millennials-in-the-us\/"},"modified":"2020-07-13T18:38:03","modified_gmt":"2020-07-13T18:38:03","slug":"wealth-opportunities-for-millennials-in-the-us","status":"publish","type":"post","link":"https:\/\/www.colapapers.com\/us\/wealth-opportunities-for-millennials-in-the-us\/","title":{"rendered":"Wealth Opportunities for Millennials in the US"},"content":{"rendered":"
\n

Millennials and Wealth in America: Do millennials have less wealth
\nopportunities in America? <\/h4>\n

Introduction<\/h2>\n

Throughout the years, society has always found wealth to be a major goal in life. Usually, acquiring an extensive set wealth happens over time from saving money and work a well-paid job.\u00a0 Older generations had better opportunities to save more for later in their life due to there being more employment<\/a> for the youth and reasonable living expenses. However, wealth opportunities are becoming harder to achieve for younger generations, for example, Millennial (also known as Generation Y). In the stimulus, The Wealth of a Nation, Chapter 10 discusses the natural inequality of wages, how employment through all perspectives has never been balanced, and that includes generational inequities. \u201cThe millennial generation is the generation of children born between 1982 and 2002, some 81 million children who have taken over K-12, have already entered college and the workforce.\u00a0 This generation will replace the Baby-boomers as they retire\u201d (\u201cwho are the Millennials\u201d). This generation is already making less money than the older generations at their age. Factors that correspond to these difficulties are people being paid less for work that other generations did and the increase in debt for generations y.With these two factors combined it become hard to save money and accumulate enough money to be considered wealthy. And this could be a quite a shock to the younger generations who grew up to believe they will have the same opportunities as their parents or be able to afford the beautiful family home broadcasted on television. The standards of economic stability are changing for the Millennial and the generations to come. Now, this young generation has to face a new reality.<\/p>\n

Student Perspective: Debt Increase<\/h2>\n

The increase in debt will be a major factor as to why Millennials will have difficulty archiving their goals. A current debt that is affecting mostly Millennials wealth is the tax that has increased. According to IRS.com, income tax rose from 10% to 39% since 1990. Income tax adds more stress to Millennials because they are not only hit with a significant amount of student debt but also taxes being pulled out of their paycheck. With the small sum of money that Millennials are earning<\/a>, it\u2019s no wonder that they are progressing slower in America than older generations did. If the average income for Millennials is about $45,000 a year and 39% of that is being reduced due to taxes, which will leave Millennials with only $20,000 a year.\u00a0 That is equivalent to what a worker at a fast-food restaurant would make. This is a problem because if this trend of economic immobility continues then, this younger generation will continue to have fewer opportunities for saving money later in life. Another debt that is affecting Millennials Wealth is student debt. \u201cThe average undergraduate student loan debt in 2002 was $18,900. It more than doubled from 1992, when it was $9,200.\u201d(Williams. \u201cAfter College, A Life Without Debt\u201d). From this quote it is evident to see, fees that add into student debt has doubled since 1990. Older generations had an advantage with little debt because they were able to focus less on paying the smaller sum of money (small by comparison) and focus more moving out of their parent\u2019s house and living with their partner or spouse. Younger generations are at a disadvantage because this high student debt of 18,900 minima prevents Millennials from being able to focus on anything but finding a well-paying job and paying off their student debt. Not only does this cause difficulty to the younger generation but also to other businesses as a whole. For example, if Millennial are discouraged to buy own houses because they have a high amount of debt than there is the possibility the housing market will drop.If colleges reduce their Tuition fees, then student debt will become less severe. College students pay for each class they are taking; this is all added to the tuition.But for each class you pay for each unit, for example, an English class that is $300 per unit will cost $900 for three units. \u201ca college charging $300 per unit may charge a flat rate of $4,500 per semester for anything in between 12 to 18 units.\u201d (Clark. \u201cUnderstanding College Tuition, Room, and Board\u201d) This payment alone is the core of tuition, and Millennials will have more opportunity to save money if this debt was reduced. A solution to reducing this factor would require colleges to provide a wider option for the online course. \u201cBy converting at least 20 percent of those classes to online courses, we could save more than $90 billion annually.\u201d (Moon. \u201cReducing Tuition, Not Offering More Loans, Will Make College Affordable\u201d)This system works because a portion of the money used goes into paying instructors, 27 cents out of the dollar according to Washington post. If students take more online classed, they are paying less for tuition and instructors and ultimately shaving more money off of the average college tuition. The less money millennials will have to pay for tuition the more they can put into their saving for a better chance at accumulating tremendous wealth. However, while this solution is a great option for a college student, the instructors are getting the short end of this deal. With student taking more only classes, the money that would go into paying the instructors for their services would decrease. The would result in either the average pay of a college instructor to decline or the occupations becoming less in demand as the year go on with students taking more online classes. Also, at the thought of online classes, if enough students do online classes then colleges would have to find the money to either provide students with computer labs which would then be added to the tuition fee.<\/p>\n

Worker Perspective: Income Decrease<\/h2>\n

Another factor that poses a problem for Millennials is the drop in
\nincome for their generation. The decline in income can cause many problems
\nranging from not being able to pay off debt to being discouraged to make major
\npurchases. \u201cThe median net worth of a millennial is $10,090, 56 percent less
\nthan it was for boomers\u201d (Reutter. Millennials consistently earn less than
\nelders) this quote shows that boomers, as a whole, made more than half of what
\nmillennial are earning as a whole. Boomers had more economic mobility in their
\ntime. This problem goes hand in hand with the increase in debt, putting millennial
\nin an even tighter spot. If this generation is accumulation such a small amount
\nof money, then paying off debt would be the last expense they would be able to
\ntend too. After the overall cost of living like, apartment rent, bill, grocery
\nand paying taxes.\u201cFully half of Millennials (51%) say they do not believe there
\nwill be any money for them in the Social Security system by the time they are
\nready to retire\u201d (Millennials in Adulthood). This quote shows that Millennial
\nare not confident that they will be able to support themselves after
\nretirement. With this lack of confidence, millennials are subjected to this
\nwill manifest into this generations skipping out on the traditional stages of
\nadulthood. Including marriage, home ownership, starting a family, and retiring
\ncomfortably. However, if millennial take charge of their financial being, they
\nwill have a better chance at preserving the wealth they have. For example, when
\nit comes to one\u2019s paycheck they\u2019ll need to take their finances into their own
\nhands. Or at least have someone help them. Millennials may have fewer options
\nand more obstacle at acquiring wealth, but they have more options to keep the
\nmoney they have. One of those options being a financial adviser. \u201cMillennials
\nneed and advisor to assist in putting a plan in place so they can start taking
\ncontrol of their financial well-being.\u201d(Allen. \u201cWhy Millennials need a
\nfinancial advisor\u201d) This article written by Ryan Allen, a business development
\nrepresentative, addresses the importance of millennials have a financial
\nadviser. When getting sound financial advice early in life, it can affect the
\nwell-being of that person for a long time. Also, young adults will have the
\nopportunity to develop healthy habits when dealing with their money. The help
\nwill improve the confidence that millennials for retirement and being able to
\nprovide for a future family. However, enlisting for a financial advisor is only
\nas beneficial as the person makes it. If someone gets a financial advisor but
\ndoes not apply the skills that advisor provides into benefiting their economic
\nwell-being, then that is money and information wasted. Errors in the
\nadvisor-client relationship can lead to failure from both parts. What\u2019s
\nimportant to take away from this is that millennials may have fewer wealth
\nopportunities, but they do have more options when it comes to saving their
\nmoney. Also, there are a wider variety of \u201cquick\u201d jobs, jobs that assisting in
\none making money quickly, available to this generation. However, without the
\nright attitude and the willingness to care about one\u2019s financial well-being,
\nany solution would be hard to accomplish.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n<\/p>\n

Conclusion<\/h2>\n

In conclusion, Millennials face lowers economic mobility due to two
\nmajor factors. One factor being an increase in debt that the younger generation
\nis expected to pay and the decrease the average income that often becomes
\ndiscouraging to Millennial. Of course, anyone could say that millennials should
\nget paid more for their jobs and have their student debt reduced. Maybe
\nlowering the prices of the overall cost-of-living. Health insurance, schooling,
\nhousing, and other expenses are what everyone would propose to free or at
\nreasonable prices. However, when dealing with money, it is never that easy.
\nMany obstacles or limitations that prevent problems like this to be solved is
\nthat not just affecting one group people. It\u2019s affecting companies, workers,
\nand those how to benefit from that money. It takes years to make changes like
\nto the economic stability of a generation, but the best thing anyone can do is
\nlearn to adapted to this new reality. Being able to develop time-saving skills,
\nbeing able to prioritize money, and maintaining a mindset of working hard are
\nlifestyle tools not only Millennial but all generation can benefit from learning
\nthese tools will help Millennial achieve a better chance at sustaining and
\nmaintaining wealth.[Word count: 1,919]<\/p>\n

Bibliography<\/h2>\n
    \n
  • \u201cWho Are the Millennials?\u201d Who Are the Millennials? \u2013 CPCC. N.p., n.d. Web. 11 Apr. 2017.<\/li>\n
  • Williams, Jeffrey. \u201cAfter College, A Life without Debt?\u201d Alternet. Dissent Magazine, 16 Aug. 2006. Web. 05 Apr. 2017.<\/li>\n
  • Reutter, Justin. \u201cMillennials Consistently Earn Less than Elders.\u201d The News Record. N.p., 2016. Web. 05 Apr. 2017.<\/li>\n
  • \u201cMillennials in Adulthood.\u201d Pew Research Center\u2019s Social & Demographic Trends Project. N.p., 06 Mar. 2014. Web. 05 Apr. 2017.<\/li>\n
  • Clark, Ken. \u201cUnderstanding the Basics of College Tuition, Room, and Board.\u201d The Balance. N.p., 22 Mar. 2017. Web. 05 Apr. 2017.<\/li>\n
  • Moon, Munir. \u201cReducing Tuition, Not Offering More Loans, Will Make College Affordable.\u201d The Huffington Post. TheHuffingtonPost.com, 22 Apr. 2014. Web. 05 Apr. 2017<\/li>\n
  • Allen, Ryan. \u201cWhy Millennials Need a Financial Advisor.\u201d Advicent. N.p., 27 Sept. 2016. Web. 05 Apr. 2017.<\/li>\n
  • Yakoboshi, Paul J. College-Educated Millennials: An Overview of Their Personal Finances(2014): n. pag. TIAA-CREF Institute, Feb. 2014. Web.<\/li>\n
  • Hoxby, Caroline M. \u201cHow the Changing Market Structure of U.S Higher Education Explains College Tuition.\u201d (1997): n. pag. Nber.com. National Bureau of Economic Research, Dec. 1997. Web.<\/li>\n
  • Douglas-Gabriel, Danielle. \u201cIs Resetting Tuition the Solution to the Broken College Pricing Model? This School Thinks So.\u201d The Washington Post. WP Company, 16 Sept. 2015. Web. 05 Apr. 2017.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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