5 Things Keeping Millennials Broke

Inflation Impact

George Kamel highlights how inflation is hitting millennials hard, with costs rising faster than wages. In 2022, the U.S. saw an 8% inflation rate increase, the largest in decades, forcing 80% of Americans to make financial sacrifices 1. Millennials, often earning less and facing high childcare costs, feel this impact more acutely.

One of the big things making millennials feel so broke right now is inflation. In case you haven't noticed, things do be expensive.

--- George Kamel

This financial strain is compounded by other economic pressures, making it difficult for them to keep up with rising expenses.

   

Homeownership Challenges

The dream of homeownership remains elusive for many millennials due to skyrocketing property prices. George Kamel notes that homes costing $200,000 in 2013 now average around $400,000, making it challenging for millennials to afford their first homes 2. Some have even bought homes they can't afford, leading to financial strain.

Many 30-somethings are trying to buy their first homes and have been squeezed by higher rates and home prices.

--- George Kamel

This situation is exacerbated by high mortgage rates and the rising cost of living, pushing homeownership further out of reach.

   

Debt Burdens

Debt is another significant burden for millennials, with car payments and student loans topping the list. George Kamel explains that auto loan debt has surpassed student loans, with younger borrowers struggling to keep up with payments 3. Student loans also weigh heavily, with Americans in their thirties holding $504 billion in debt.

According to the Fed, Americans in their thirties have a total of $504 billion in student loan debt, more than any other age group.

--- George Kamel

These financial obligations delay major life milestones, such as buying a home or starting a family, further complicating millennials' financial futures.