Did you know that Baby Boomers are no longer the largest generation in the U.S. workforce? As of this year, Millennials (or Generation Y) have taken that spot according to the Center for Generational Kinetics. This also means that Millennials are now the largest generation of consumers.
If you remember the headlines from a couple years ago, everyone in the auto industry was concerned with Millennials simply not wanting to buy vehicles. Headlines abounded with articles discussing the migration to urban centers with walkable commutes, the rise of ride sharing, and the “inevitable” doom of personal ownership. All these fears turned out to be unfounded when it turned out that the reason Millennials weren’t purchasing vehicles was not because they weren’t interested in owning their own vehicle, but rather because they simply couldn’t afford the purchase.
Now, however, times are changing. This demographic is getting older and settling into careers. Their debt-to-income ratio is becoming more balanced. However, that’s not to say that this demographic is as well off as their Baby Boomer parents were at the same age. According to Northwestern Mutual’s 2018 Planning & Progress Study, those Millennials between the ages of 25 and 34 have an average of $42,000 in debt. In addition, more than 44 million Americans are saddled with student loan debt averaging $33,000. Continue reading