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Millennials Falling Behind Boomers

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Millennials are 20 percent behind what their parents were doing at the same age in life.
In the normal course of things, it is expected that each generation of Americans will be better off financially than the one before it. That is not holding true for the Millennials. They are lagging behind their Boomer forebears by an average 20 percent in earnings.

The Federal Reserve’s latest figures, as interpreted by the advocacy group Young Invincibles, show that, with median household income at $40,581, the Millennials are 20 percent behind what their parents were doing at the same age in life.

The facts run counter to the wisdom that education is the answer, since the Millennials outstrip their elders in that category.

The M generation boasts less home ownership and has half the net worth of the Boomers. Their education debt is significantly higher, the data show.

The scenario is not good for the new administration, which has pledged a return to post-World War II economics. Culture and identity issues that split the country are factors. White Americans still earn much more than Latino or Black peers, but they have also seen their incomes drop the most, relative to the Boomers.

Many of the Millennials bemoan the fact that at their ages, their parents had homes and were rearing families. Too many of today’s college graduates are working at low wages in jobs that have nothing to do with the courses they took.

Education does have an effect in boosting incomes, but the median college-educated Millennial who has student debt is earning only slightly more than a Boomer without a degree did in 1989, the figures say. More young Americans have a college education, with some 35.6 percent of those 25- to 29-year olds boasting a degree, compared with 23.2 percent in 1990.

In1989, home ownership for the earlier age group was 46 percent. It has dipped now to 43 percent, and the median net worth of the average Millennial is $10,090, 56 percent less than that enjoyed by the Boomers at the same age.

Despite being born at a time when opportunities seemed at a crest, downward mobility is the trend for white Millennials if the current numbers tell it like it is.

More Young Adults Live With Parents

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More millennials are choosing to still live with their parents.
More millennials are choosing to continue living with their parents.
For the past century and more, young adults were prone to leave the nest and set up housekeeping for themselves. Now, they are more likely to be residents in the family home, either as singles or with a spouse, according to the Pew Research Center.

Young Adults Waiting To Get Married

The phenomenon, statistically changing the 130-year trend, is as result primarily of young people who delay marriage until into their 30s, the Pew study concluded. In 2014, the percentage of young adults living in their parent’s home was 32.1. It is the largest percentage since 1940, when some 40 percent were living at home.

Young Adults With Less Education

Choosing a spouse or living partner is the most likely condition to prompt living with a parent when the young couple is not prepared financially to be independent. Status of education is also an important factor. Young people with less education may be more likely to remain at home, the study found. The statistical breakdown showed that in 2014, 19 percent of young adults with a bachelor’s degree were living at home; 36 percent of those who had some college but not a degree; and 40 percent of those who had failed to complete high school.

Since 1980, the level of education has been more telling, with college education being a definite benefit in the job market and more of those without a high school diploma dropping into less well-paying jobs.

The trend not to marry as early has had a definite effect, a Gallup Poll shows. In a survey, 60 percent of Millennials said they had never married, compared with 16 percent of Generation Xers and 10 percent of Baby Boomers. The increasing trend for women to succeed in the job market, while more males are floundering is one of the reasons, experts say. The Great Recession had a greater impact for men than for women.

Attitudes also have been in play. Marriage formerly was considered a step to help young couples to reach employment and financial goals. Now, marriage is seen to be the final step to reaching such goals, the researchers report. They delay commitment to marriage until they feel their education and career goals are stable.

The rising costs of education, with a larger percentage of young adults saddled with overwhelming education debt, also enters into the equation. Expectations for “living high” in marriage, which most of their parents did not harbor, have an effect on marriage decisions as well.

Unemployment

Relatively high unemployment rates over the past decade also have been a factor. The number of young men who are unemployed and living at home far outstrips the number who are employed and living independently.

The effect on the parental household of having young adults still in residence is the flip side of the new trends, with some parents delaying retirement and other decisions to accommodate the extra persons they are helping to support.

Preparing For Your Career

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The more education the broader range of jobs which leads to greater earnings.
Higher education leads to greater earnings.
“What are you going to be when you grow up?” It’s the standard question kids get from the time they are able to converse. The answer, though they don’t have any way of knowing it, will make a huge difference in their lives.

Used to be most boys opted for jobs as firemen or star-quality quarterbacks. Girls for a long time were limited to teaching and nursing. Now there are dozens of job options for children of either gender and preparation for them runs the gamut, from high school education through years of graduate work. Likewise, the income they can expect has a wide range. The tales of high school dropouts who made fantastic fortunes are few and far between.

Career Preparation Begins In Elementary School

Experts can reasonably predict how successful a child is going to be based on performance in grades K-12, although, of course, there are exceptions. Many job opportunities are sidelined along the way, placed off-limits to children who don’t see the connection between education and the future in the job market. A serious approach to the foundation years of education will help a child and the support and guidance of parents can make a huge difference. Ideally, however, children should be advised that money is not the only reward for work. Satisfaction in the activity a child chooses to pursue is as important as what they can earn.

The More Education The Greater The Earnings

Logically, a child needs to know that the more education they get, the broader the range of jobs they will qualify for and the greater their earnings will be. If they don’t finish high school, for example, the jobs that are available include such things as waitressing, farm work, fast food preparation, custodial jobs or highway maintenance, will pay from $1,583 to $2,500, according to standard listings.

High School

A high school diploma will generally offer entry into such jobs as bank teller, construction, data entry, child care, military, travel agent and others. The pay range is $2,049 per month to $3,494.

Vocational

A vocational degree (two years or less of post-high school education) in fields such as auto mechanic, cosmetologist, machinist, plumber, welder, etc., increases the range from $2,040 to $3,666.

Associate

A two-year associate degree ups the ante. Jobs such as dental hygienist, office manager, paralegal, nurse or real estate agent are opened up., with pay ranging from $3,205 to $5,759.

Bachelor’s

A bachelor’s degree is required for accountants, teachers, elementary teachers, flight attendants, social workers, marketing managers, news reporters, graphic designers, meteorologists and many other professional jobs. Pay ranges from $3,154 to $7,859.

Master’s

A master’s degree prepares secondary teachers, physical therapists, psychologists, engineers, guidance counselors, librarians and speech pathologists and other specialized fields, with pay from $4,479 to $7,318.

Professional

The step up to a professional degree is required for college professors, dentists, lawyers, optometrists, pharmacists, veterinarians, etc. The pay ranges from $4,500 to $12,645.

Medical

Medical degrees take several years of very expensive training beyond a bachelor’s degree, but the wages are commensurately higher, beginning at an average of $14,500 for a pediatrician to $15,246 for a general practitioner.

There are, obviously, dozens of variables that enter into the equation, but the general truth is that the better, highest-paying jobs go to those who are educationally prepared.

Career Planning Tips

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The statistics leave little doubt that post secondary education is the best way to improve your earning power. But simply going on to college is not the best way to approach such education. Target your post-high school learning to specific goals, a publication of the U.S. Department of Education suggests.

Schooling that meets your goals.

There are many types of universities, colleges and other training opportunities. Picking the one that meets your goals can save you time and money. If a one-year certificate will get you the job you want, don’t head to a four-year degree institution. For some students, the one- or two-year qualification may set you up to earn enough to finance further education, if that’s what you want.

Stackable credentials.

It is sometimes possible to combine work experiences and training at the same time. “Stackable credentials” may be available and could move you toward additional education while working to pay for it.

Campus size and experience.

Consider what size campus and student population makes you most comfortable. It can have a telling effect on the quality of your education. Consider extracurricular opportunities and social aspects of the experience if those things are important to you, but always work toward the short-term goals. Do you want to be near home or in an entirely new location?

Best programs for chosen field.

If you are already determined to pursue a particular career objective, choose an institution that will get you there without a lot of side trips. Research the academic departments in several schools to determine if they have strong programs in your chosen field. Network with people already working in your chosen career path. Their advice could be valuable.

Choosing a career.

If you are not set on a career, an academically balanced school will give you the opportunity for exposure to a variety of options.

Explore financial opportunities.

College costs are going up and you should explore any an all opportunities for scholarships, grants, work-study options and loans to prepare to meet the financial challenge. Search online to see where you can get the best education for the money expended. Be acutely aware of how much debt you want to acquire. Education debt has become a drain on future earnings for many college graduates.

Prepare while in high school.

While you are still in high school is the best time to prepare to meet the requirements of the post-secondary institution of choice. Some colleges and universities have admissions policies that require you to apply six or eight months before you expect to attend classes. Others accept new students year round. Many have minimal GPA or SAT scores.

Look into retention rates.

Dropping out of a higher education program is costly and time consuming and leaves you years away from the goals you set. Don’t stop short of the goal if you can help it. Look at the retention rates of the school you want to attend. They may give you clues as to how much the school will be willing to do to hold onto you as a student.

Higher Education One Of Victims of Bad Economy

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It has long been apparent that higher education has a direct correlation with what a person can expect to earn during his or her lifetime. But there is growing concern that the high cost of higher education may be nudging some young people out of the matrix. With the amount of their tuition checks constantly rising, the number of students borrowing to pay their college costs has doubled in the past decade, the College Board reports. The average cost of one-year tuition at a public four-year college is now $20,000, and at private non-profit schools, the average jumps to $35,000. Those numbers are lending themselves to a groundswell of discontent among young students who say they are being priced out of the prospects for the higher education they need to compete in today’s world.

One group of students recently expressed their concerns in a demonstration at New York University’s Washington Square. The group characterized themselves as “Casualties of Debt.” and their objective was to foster more understanding of their situation. Among the figures they tossed up for review: The amount of outstanding student loans in America surpassed credit card debt for the first time in August 2012. The indebtedness inevitably eats into the prospects of the better earning power they are trying to build, they complained. NYU, incidentally, leads the nation in student debt at $659 million and growing.

College tuition continued to rise even when other industries were cutting prices to accommodate a sluggish economy. During the 2008-09 school year, in-state tuition at public schools rose by 6.4 percent, while out-of-state tuition jumped by 5.2 percent. At private four-year universities the increase was 5.9 percent. College graduates are leaving school with major debt and, at this point in time, at least, moving into a depressed job market plagued by high unemployment, making the promise of increased earning power just empty promises for many of the graduates.

The New York demonstration, which was supported by MTV personality and filmmaker Andrew Jenks, may have had minimal impact, but it is an indicator of unrest among students and among those who would like to be students, but whose current personal finances don’t allow them to pursue the education that they are convinced would enhance their future earning power.