- Only half believe they are good at dealing with financial matters
- Living paycheck to paycheck, they are relying on cash and debit for day-to-day expenses
FORT WORTH, TX – July 12, 2017 – Young people have always struggled with money, but for non-prime Millennials today, managing their personal finances is especially hard, according to the final two studies in a series of Millennial-focused reports by Elevate’s Center for the New Middle Class.
According to the research, 58 percent of non-prime Millennials – those with credit scores below 700 – find themselves living paycheck-to-paycheck and 41 percent run out of money every other month, or more often.
“It’s troubling to see just how hard of a time these Millennials are having managing their day-to-day finances,” said Jonathan Walker, executive director of Elevate’s Center for the New Middle Class. “Our research shows that half of non-prime Millennials worry all the time about their monthly living expenses.”
“Millennials, particularly, get a bad rap about their financial management. But, our study shows that many non-prime Millennials make responsible decisions when faced with difficult situations. When emergency expense hits them, they don’t have traditional options, so 1 in 5 think first to set up an installment plan,” continued Walker.
Additional key findings include:
- 13 percent of non-prime Millennials admit that it is difficult to predict their month-to-month income
- 13 percent regularly overdraft their savings or checking accounts
- 64 percent say that they have too much debt right now, twice as likely as prime
- Only 37 percent of non-prime Millennials express any confidence that they could come up with $1,200 for an emergency expense in a month
- Non-prime Millennials are 71 percent less likely to turn to credit cards if they needed to come up with $1,200, compared to their prime counterparts
- Are more likely to experience unexpected car repairs or non-routine medical expenses
- Are 45 percent less likely than prime Millennials to maintain a monthly budget
- Are 58 percent less likely than prime Millennials to put aside money for savings
“Only half of non-prime Millennials feel that they are adept to deal with day-to-day financial matters, compared to three quarters of their prime counterparts. Factors such as lack of financial education, income volatility, too much debt and unexpected expenses contribute to difficulty in maintaining a balanced financial life. These circumstances combined with lack of credit create a stressful situation for non-prime Millennials. While it’s common to experience stress, carrying the burden of financial anxiety can affect other aspects of life, such as personal relationships,” continued Walker.
“However, this is a testament to the resilience of the Millennial generation. Despite their struggles in managing day-to-day financial matters, we see over and over again in our studies the desire and effort to make progress, and confidence that they can meet their short-term financial goals, with 41 percent of non-prime Millennials citing this confidence.”
Studies in the Center’s Millennial series include:
- Millennials’ Day to Day Finances: The Non-prime Experience
- Getting By: How Non-prime Millennials Overcome Financial Challenges
- Financial Education and Attitudes: Non-prime Millennials
- Millennials and Work: The Non-prime Experience
About the Research
The Center’s research compared the responses of 1,217 Americans with prime and non-prime credit scores using interviews conducted December 6-14, 2016. For more details on the studies, click here.
About Elevate’s Center for the New Middle Class
Elevate’s Center for the New Middle Class conducts research, engages in dialogue, and builds cooperation to generate understanding of the behaviors, attitudes, and challenges of America’s growing “New Middle Class.” For more information, visit: http://www.newmiddleclass.org
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Elevate (NYSE: ELVT) has originated $4 billion in credit to more than 1.6 million non-prime consumers to date. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers’ good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate’s suite of groundbreaking credit products includes RISE, Elastic and Sunny. For more information, please visit http://www.elevate.com.
Sloan Bohlen, 817-928-1646
Ishviene Arora, 917-765-8720