Money Management by Non-Prime Millennials: How They Struggle and Worry More Than Their Peers
July 12 2017 - 7:30AM
Business Wire
- 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
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
Follow Elevate’s Center for the New Middle Class:
Twitter: @newmidclassFacebook: facebook.com/NewMiddleClass
About Elevate
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.
Follow Elevate:
Twitter: @elevatecreditFacebook:
facebook.com/ElevateCreditLinkedIn:
linkedin.com/company/elevate-credit
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Solebury CommunicationsInvestor Relations:Sloan Bohlen,
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