Anton Novoderezhkin/Getty Images
Two recessions later, millennials feel the financial burn.
According to Morning Consult's State of Consumer Banking & Payments report, nearly half (45%) of this generation are very or totally concerned about their financial future. This is more than the 35% who felt this way overall in the US.
According to the survey, 38% of millennials feel worse about their finances than 25% of adults. 46% of millennials felt their finances controlled their lives more than 33% of adults.
Morning Consult data shows that millennials have a lower perception of their financial health than the national average. The economic odds against American millennials have been unfair. They have experienced two recessions and are currently struggling with high living costs and student loans. These challenges make it harder for them to realize the postwar American Dream of a house in suburbia, marriage, and children.
Ernie Tedeschi is the White House's senior policy economist. He previously stated to Insider that millennials have had their experience affected by "different economic conditions and realities" than boomers or Gen Xers. He said that this has implications for their individual career prospects and impacts their sense of dynamism.
The Great Recession ravaged the job market, which made it difficult for older generations to gain a foothold in the workforce and build wealth. Research has shown that graduates who leave during recessions could experience stagnation in their financial growth for as long as 15 years.
It's not surprising that many millennials have student debt amounts in excess of $38,887 per borrower, while also having to pay high living expenses for necessities such as rent and healthcare.
The 2020 recession saw the generation hit again before turning 40, while still dealing with the financial consequences of the previous one. Mark Muro, a Brookings Institution senior fellow and policy chief, said that millennials are suffering from long-term damage due to the Great Recession. It's still a major problem, and new burdens are coming at them.
Although the coronavirus recession was shorter-lasting and more quickly recovered than the 2008 financial crisis in 2008, it had serious consequences: many millennials were forced out of the market by a housing crisis and job loss just as they were about to purchase their first home.
There are some bright spots. There are some signs that the 1980s millennials may finally be able to recover from their financial woes. They've made significant progress in building wealth and are the only generation at or above prepandemic employment. It's not surprising that they are worried about money, especially since they will be facing inflation for the very first time in their lives.
Because millennials can jump over any economic hurdle they want, and there are always more.