Despite still being young and having plenty of opportunities to improve their financial strategies, many young people may have difficulties with their budgeting and savings. This can become problematic, especially if they don’t immediately work to alleviate the situation.
Millennials have the lowest average credit scores compared to any other adult age demographic, according to a report from Experian. This was a VantageScore of 628, significantly lower than the next score of 653 from Generation X. The scale ranges from a low of 300 to a high of 850.
Debt remains an issue for many Millennials, though the level is still below the national average. The report explained that the average Millennial has a debt level of $23,332, while the average level is $27,887.
The average number of bank cards among Millennials is 1.57, which is notably lower than the average of 2.19 for all adults, the report explained. Partly due to this, the average balance on these cards for Millennials is $2,682, which is lower than the $4,501 from the whole measurement.
“While this study looked at all four generations, we found that Millennials are in need of the most guidance to improve and build their overall credit health,” said Michele Raneri, vice president of analytics, Experian. “The younger generation are still building their credit, but with the right combination of experience, credit education and choosing credit offers wisely, the 20’s can be used as a time to demonstrate creditworthiness and build a positive credit history.”
Financial strategies lacking among some people
Getting involved with investments is something that many people try to do in order to have a better opportunity to achieve the financial future they want. However, this may not be a common theme for some people.
According to a report from Nationwide Funds, more than 25 percent of those who could invest lack any type of financial strategy. The main response came from 31 percent of those polled, as they explained they haven’t had a chance to create one.
“We live in an era when Americans are more responsible for their own financial security than ever before,” said Michael Spangler, president of Nationwide Funds. “However, for various reasons far too many haven’t taken the time to draft a detailed financial plan to help them achieve their goals over the short, medium and long terms.”