Declining Wealth Among America's Young Adults

By Jay Maxwell, 16th Mar 2013 | Follow this author | RSS Feed
Posted in Wikinut>Jobs>Retirement

"Destiny is no matter of chance. It is a matter of choice. It is not a thing to be waited for, but a thing to be achieved." -- William Jennings Bryan

Wealth-building is Eluding Our Young Adults

Build Wealth

ANNIE LOWREY reports for the New York Times: While Pearl Brady is the proud holder of a bachelor's and master's degree, she has no savings despite her best efforts. Her anxiety builds as she grapples building funds for a home deposit, children, and ultimately retirement. When will she be able to accumulate a nest egg? Hopefully, somewhere around forty but that prospect remains uncertain. Ms. Brady case is not an isolated one. A new study exposed a startling truth about Ms. Brady and her peers. Those up to age 40 have amassed less wealth than their parents did at the same age. How could that be with the average wealth of Americans doubling over the last quarter-century? Because wealth compounds over extended periods of time and the longer you wait, the less secure your future becomes. The expectation in the homeland is that every generation does better than the previous generation. As you surmise, this is no longer the norm. What are you saying? Does that mean generation x will have less? That is a lingering possibility. Wealth-building for the young American worker; is suppressed by a diverse range of economic factors.

The Daily Cost of Living

Ms. Brady, used in this scenario is responsible for student loan debt and credit card expenses. After that, there is the traditional household expenses which leaves little to do anything else. Looking forward, the feasibility of building a nest egg falls outside the realm of one's imagination. Of course income will continue to rise, but it will never out pace living expenses. The cure that continues to elude many young employees is strong and sustained job and wage growth, according to the experts. In other words, the scales of balance is about to be tipped. If politicians fail to address this issue now, the young worker will be trapped in a game of catchup. The Urban Institute study suggest that there is a perfect storm brewing on the horizon that will continue to erode the economic foundation of young workers. In the aftermath of the housing bubble, those who had purchased homes lost value and hence became upside down on their loans. Despite sharp declines in price levels and mortgage interest rates are quite seductive, many young adults are left out due to stringent financial laws. Does that mean all hope is lost? No, rest in the hope that the way has already been prepared.

Meet the author

Jay Maxwell

I am endeavoring to become a freelance article writer for now. Recent studies include a freelance writer's article and blog course offered by Growth Education.