The new or millennial generation, also known as the Y generation, are people born between 1980 and around 2000. These people, who are mainly based on a large proportion of young people, are among the most indebted groups of people, with the smallest financial knowledge and the greatest problems to find a stable job.
Nowadays, young people are starting to enjoy the credit burden from the start of their studies by studying the money they borrowed from the bank and coming out of the university with a considerable credit burden.
Auto loans and mortgage loans
Afterwards, these youngsters are not able to find well-paid jobs and still take both auto loans and mortgage loans, thus dropping themselves deeply into debt that it will not be possible to get out to middle aged or even retirement years.
And these are very big problems that we will only see when economic growth slows down slowly, because this new generation will not be able to spend much money on different goods and services as the previous generation did. And we will not save extra credit because most people have borrowed more than they should.
Short-term services such as quick loans and credit lines
Therefore, short-term services such as quick loans and credit lines are very popular among young people, and these people often choose to borrow to get enough money for survival and entertainment. Unemployment among young people is very high and, after the recent economic crisis, this generation, up to the age of 35, has suffered the greatest loss of wages and a decline in overall living standards.
But young people, however, They are still quite optimistic and in various surveys they find that they still believe they will be able to make enough money to reach their financial goals. And this high unemployment means that young entrepreneurs have a great opportunity to choose their own employees by selecting them according to different criteria, as well as offering lower wages because the labor market supply is small, but the demand for labor is very high. And because the younger generation is usually smarter than the previous ones, these young companies could definitely work much more productively and more than companies with 35+ employees.
Why young people are not as economically active nowadays
The only and biggest problem I see is why young people are not as economically active nowadays as well as having lower incomes and spending less money is these big credit commitments which usually stop people and try to land, not planning and hoping for really impressive plans, because every month these payments have to be made, so a stable income is needed.
But young people need to be crazy, travel around the world, build their own businesses and try to invent something new so that they can then achieve their goals with all this experience. And doing one job all the time and earning a salary is definitely not what young people should do right after graduating because otherwise there will be no new generations and new innovators that will overturn the whole industry’s “upturn” and thus overtake all market leaders.