2021 Pandemic Grads Are Optimistic About Their Financial Futures Despite Challenging Year
July 20 2021 - 5:00AM
Business Wire
Social and financial setbacks left their mark,
but an Experian national survey reveals many young adults are
looking forward to their post-grad lives
As college graduates start adulting and enter the workforce in
the wake of a pandemic, a national consumer survey by Experian®
recently examined their sentiments about finances and outlooks for
the future. Although the findings reveal that some young adults
struggled with financial stressors during the past year, many
surveyed believe lessons learned during the pandemic will help them
in the future.
The Impact of COVID-19 on College Graduates
Numerous financial factors impacted college grads, which colored
their attitudes and shaped their decisions. Top influences that
affected them included running out of emergency savings (34%), not
having a high enough credit score to get a credit card or loan
(30%), and seeing their parents struggling to make ends meet (29%).
The leading sources of financial stress were paying monthly rent
and bills (55%), paying for graduate school (43%), paying for an
additional certification (41%) and having bad credit (39%).
To ease financial strain, about a third (31%) of those surveyed
returned to their hometowns seeking more affordable rent and 30
percent moved in with their parents during the pandemic. To improve
their finances in the next six months, the primary step students
surveyed are taking is investing some of their money (40%).
Despite challenges, the outlook of most grads remains positive,
with almost three-quarters (74%) of respondents feeling hopeful
about the future and 66 percent believing they’ll have financial
security in six years. What affects grads’ outlooks most is feeling
financially secure (50%) and, equally, feeling confident in their
major or degree.
“Graduates should feel proud that they successfully navigated
the past year and remain optimistic about the road ahead,
especially as it relates to money,” said Rod Griffin, senior
director of Consumer Education and Advocacy for Experian. “Getting
educated about finances and how credit works is one of the best
ways to protect your financial health and prepare for the future.
We encourage recent grads - and all consumers - to practice smart
money management and credit habits so they can have more financial
options in life.”
One actionable step all young adults can take is gaining greater
control of their credit profile by understanding what is in their
credit report and what affects credit scores. Experian is committed
to helping young consumers start their financial journey on the
right path offering many free resources including access to
Experian credit reports, FICO® Scores and CreditMatch™, as well as
to Experian Boost™. The free tool enables users to add positive
payment history for utility and telecom bills as well as video
streaming subscriptions into their Experian credit report, which
can possibly improve their FICO® Scorei.
Despite Adversity, Gen Z Find New Financial
Perspectives
Survey respondents feel that their immediate journey may be
challenging with 81 percent feeling the pandemic makes it even more
difficult to find a job. Men were more likely to agree with this
statement at 87 percent compared to 77 percent of female
graduates.
With challenges in mind, the good news is that 79 percent of
those surveyed say they appreciate money management more, and 21
percent of respondents have even been able to invest the money they
saved to further stabilize their finances. To improve their credit
scores, many survey respondents are keeping tabs on their scores
more often (46%) and paying off credit card debt (44%).
“These findings are encouraging. Paying down debts and
monitoring your credit scores and reports is one of the best things
consumers can do to protect their financial health,” added
Griffin.
Experian is committed to educating consumers about credit and
finance. Consumers are encouraged to join Experian’s weekly
#creditchat hosted by @Experian on Twitter with financial experts
every Wednesday at 3 p.m. Eastern time, or visit the Ask Experian
blog for answers to common questions about credit. Educational
content is available at http://www.experian.com/education.
About Experian
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 17,800 people operating across 44 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
i Results may vary. Some may not see improved scores or approval
odds. Not all lenders use Experian credit files, and not all
lenders use scores impacted by Experian Boost.
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version on businesswire.com: https://www.businesswire.com/news/home/20210720005232/en/
Sandra Bernardo 949 529 7550 sandra.bernardo@experian.com
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