Filene Research Institute | May 2014
Summary: Generation Y will leave a lasting imprint on American history. The largest, most diverse generation America has seen, Generation Y comprises millions who were born between the late 1970s and the mid-1990s. While this generation is confident, they face financial pressures that will jeopardize and limit their economic opportunities. A fragile economy, student debt, and an unstable job market are a few of the hurdles they face. Looking at the data from the most recent National Financial Capability Study (NFCS), we are concerned about their unprecedented levels of student debt and their overconfidence in financial matters. Despite encouraging signs in terms of their assets, the analysis reveals that Millennials are deeply indebted and struggle to meet payments on both short- and long-term obligations. Even though most Gen Yers feel good about their financial knowledge, data show that they lack the basic skills needed to make savvy financial decisions.