Friday February 28, 2020
Home Lead Story This Decade t...

This Decade to be Good for the Financial Health of Millennials

2020s Could Be Decade Millennials Finally Get Ahead

0
//
Millennials
Share on Facebook Share on Twitter Share via Email Print this page The 2020s might be the decade faltering millennials finally roar to financial health. Pixabay

By Dora Mekouar

The 2020s might be the decade faltering millennials finally roar to financial health and lifestyle after a tough start brought on by the Great Recession, which lasted from 2007 until 2009.

Coming of age during the worst economic downturn in the United States since the 1930s meant that many of these young people, who are now in their mid-20s to late-30s, experienced a delayed entrance into the job market or accepted lower-paying jobs for which they were overqualified.

Many millennials were hard hit due to a variety of factors, including high unemployment, student loan debt, and an increased cost of living, particularly if they graduated from high school or college during the downturn.

Millennials
Millennials Andy and Stacie Proctor stand in their new home in Vineyard, Utah. VOA

“Since then, we’ve really had a lot of wage stagnation, particularly given that so many millennials started behind where they thought they would be,” says Jason Dorsey, president and lead millennial researcher at the Center for Generational Kinetics. “And it’s taken them longer to recover — if they have recovered.”

Experts also say U.S. millennials are the first generation to feel the full impact of decades of rising inequality in America.

A recent study found millennials are significantly financially worse off than previous generations were at the same age. Since 1996, the net worth of people under 35 has dropped by more than one-third, or 34 percent.

But things could be looking up for these younger Americans now that the average U.S. millennial is over the age of 30 and poised to enter the wealth-accumulation stage of their life.

“They’ve had a lot of time to learn about what it takes to succeed? What are the kinds of decisions that lead to the outcome that you want?” Dorsey says. “And for many millennials, boomers [people aged 55 to 75] are finally going to transition increasingly out of the workforce, which is going to create opportunity for them to actually move up into more management-style roles.”

Millennials
Juan Hernandez, 25, is among millennials nationwide with student debt who are worried about being able to qualify for a loan and come up with a down payment for a home. VOA

Millennials are at the age when Americans traditionally buy homes, start saving for the future, and invest for their retirement. It also will help that many have paid down their student debt now that they’ve been out of college for a number of years.

“And at the same time, many of them will become potentially two-income households and that’s also really helpful for many of them,” Dorsey says. “It’s sort of a perfect storm. It just happens to align with the 2020s. It’s not that the 2020s are this famous decade, but more so that millennials are hitting the times when they should start really saving and investing, and earning higher incomes relative to their spending.”

Also Read- Lower Physical Activity in Adulthood Leads to Obesity: Study

And if millennials blame previous generations for their current financial straits, it might cheer them up to know this is also the time many of them can expect to start inheriting wealth from their more well-off baby boomer parents or other relatives. (VOA)

Next Story

“India Has Opportunity To Become One of The Top Three Economies in The World”, Says Reliance Chairman Mukesh Ambani

The RIL chairman said that empowering small and medium businesses would be key to driving India's growth faster

0
Mukesh Ambani
The RIL chairman said that empowering small and medium businesses would be key to driving India's growth faster. Wikimedia Commons

Riding on the power of technology, India has the opportunity to become a premier digital society and one of the top three economies in the world, Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani said here on Monday.

Ambani said that India has the opportunity to become the most technically-enabled society where all the development could be powered by the tools of technology. “We can argue about whether it will happen in five years or 10 years but it is going to happen, and we will be in the top three countries in the world,” he said in a fireside chat with Microsoft CEO Satya Nadella.

The RIL chairman said that empowering small and medium businesses would be key to driving India’s growth faster. “Every small business and entrepreneur in India has the potential to become a Dhirubhai Ambani or Bill Gates. And that is the power that differentiates India from the rest of the world,” he said during Microsoft’s “Future Decoded Summit” here.

“I think that the entrepreneurial power that we have at the grassroots is enormous. We have to realise that small, medium and micro enterprises provide 70 per cent of India’s employment. They drive 40 per cent of India’s exports,” Ambani added. India has transformed tremendously over the past two decades — from a $300 billion economy in early 1990s to becoming a $3 trillion economy in 2020.

“And I think, I can easily say that the mobile networks in India now are better or at par with anybody else in the world,” he said. About 38 crore people have migrated to the 4G technology platform offered by Jio in about three years, Ambani informed, adding that since the establishment of Jio, average data rate has come down drastically in India — from Rs 300-Rs 500 per GB to Rs 12-Rs14 per GB.

Congratulating Nadella for his leadership of the organisation, Ambani said that the collaboration between Microsoft and Jio would be a defining partnership of the decade. RIL in August last year announced partnership of its subsidiary Reliance Jio Infocomm with Microsoft in the technology space, including creation on cloud solutions.

As per the partnership, Jio will leverage the Microsoft Azure cloud platform to develop innovative cloud solutions focused on the needs of Indian businesses. Jio will set up data centres in locations across India, consisting of next-generation compute, storage and networking capabilities, and Microsoft will deploy its Azure platform in these data centres to support Jio’s offerings.

Mukesh Ambani
Riding on the power of technology, India has the opportunity to become a premier digital society and one of the top three economies in the world, Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani said here on Monday. Wikimedia Commons

Nadella said that the mission of Microsoft is to help organisation to become independent — not dependent — to build their own Artificial Intelligence and other tech capabilities, and tech intensity. “In the next decade, our main investment will be on making software engineeres that organisations hire more productive,” Nadella said, adding that Microsoft will build complete toolchain for developers.

The Microsoft CEO said that the increasing rate of digitization of people, places, and things, will be the defining secular trend over the next 10 years. Saying that Microsoft’s differentiated approach across the cloud and edge is winning customers, Nadella said that Microsoft now has 57 data centre regions in the world.

ALSO READ: Google Invites Applications for 4th Batch of “Startups Accelerator India” Programme

In India, Microsoft has three data centre regions — Mumbai, Pune and Chennai — besides a Cybersecurity Engagement Centre in New Delhi. (IANS)