Many young adults across the country have run into financial troubles in the past six months, and as a result have less confidence in their own economic standing.
According to a report from Western Union, which surveyed Americans between 18 and 34 years old, more of the 87 million so-called "Generation Y'ers" have run into money problems in the first half of the year. Though the study describes those in this age group as generally "creative, independent and tech savvy," this is apparently not enough for them to avoid financial trouble.
The survey found that almost 30 percent of those polled said they have had difficulty managing their spending, and as a result, more than 20 percent wait longer to pay their bills. About 35 percent of all respondents said they have borrowed money from both friends and family members in the past.
These financial hardships may have contributed to declines in credit scores among Generation Y. The survey revealed that 27 percent of those polled had been denied a line of credit or been turned down for a loan. The survey found that 60 percent of respondents hadn't seen their credit score in the past year, while 44 percent have never checked it.
In addition, the survey found that half of Gen Yers reported feeling more stress about their financial situation in the last six months, and about one-third said their financial situation has gotten worse in that same time period.
However, the report said it's not all doom and gloom for Generation Y.
"The silver lining is that, in spite of the difficult economy, Gen Y is engaging in money-savvy behaviors that can help build a better financial future," said David Shapiro, a senior vice president at Western Union. "The Money Mindset Index identified Gen Y's use of tools such as online bill pay to manage their budget and credit standing. Factor in their high comfort level with web-based programs and budgeting tools, and Gen Y has a solid foundation for getting their finances back on track."
Some members of Generation Y could be negatively affected by debt even before gaining their own financial independence, as the average college student now leaves school with thousands in credit card debt.
Credit Score Articles
Generation Y Finds New Financial Troubles Related to Credit Scores
8/11/2010 8:55:00 AM
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