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Millennials’ Income Has Only Grown By $29 Since 1974

Millennial revenue has risen by just $29 since 1974 – nowhere near keeping up with the rising housing expenses and the plunging size of student loans. Does it mean millennials will turn to merchant loans when life proves hard for them?

Millennial generation seems to be the most privileged age group that ever lived. But how factual is this narrative considering they have to secure student loans and keep up with the high cost of living?

The income report released by Super Money revealed the following statistics:

       Millennials aged 25-34 have only seen a $29 income rise since 1974, adjusted for inflation.
       Older adults have seen an increase from $2900 -$5400 in the same time frame.
       Income growth hasn’t held pace with the dramatic rise in house expenses and education.

Paychecks are Anything But Fat for American Millennials

Super money further analyzed the US Census Bureau data and found that the Millenials were earning an average of $35,426 in 1974. By 2017, that figure jumped to $35,455.

These figures are sad enough on their own, but especially pale in recession –adjusted contrast to other age groups.

Adults aged 35-44 generated nearly $2900 in 1974 than their peers. And those aged between 45 -54 have had an increase in revenue of almost $5,400 over the same period.

The extra income – or shortage of income – for millennials is deeply troubling when faced with high costs of necessities.

The survey looked at statistics from the US Federal Housing Agency and discovered that the average cost of house purchases increased by 39% approximately in the same period.

Furthermore, the rate of national health care per individual has risen by $9000 since 1970, and tuition costs have doubled since 1971, according to the press release.

The High Cost of Living and Income Rises are Out of Balance

The statistics reinforce the 2018 Student Loan Hero study, which revealed that rent, housing costs, and college fees have all rose rapidly than income in the US. Housing has become so costly that Millennials are waiting longer than ever to purchase their homes.

Smart asset's survey discovered that in some towns, the average household exceeded the average income by so much it could take almost a decade to save for a 20% mortgage deposit.

And the growing cost of college, particularly troublesome taking into account that learners are borrowing more than ever before. The domestic total student loan debt is $1.5 trillion, and the average student loan debt for 2018 graduates who received student loans is $29,800.

It's disappointing for Millenials who came to age in the era of the Great Recession to find that college cost doesn't automatically lead to higher incomes.

The dramatic expenses of living, student debt payments, and reduced income make it hard for them to make a financial contribution.

Author Bio: As the FAM account executive, Michael Hollis has funded millions by using merchant loanssolutions. His experience and extensive knowledge of the industry has made him financeexpert at First American Merchant.
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