Young adults are living on the edge with their finances, according to a new study from the University of Illinois. About a third of young adults (those between 18 and 24 years old) were considered “financially precarious,” meaning they had few money management skills and little income stability, according to the study.
Another 36 percent of participants were considered financially “at risk” because they had an unexpected drop in income within the year and had no savings to support themselves - and didn’t have enough to pay for a $2,000 emergency. Approximately 10 percent also said they struggled with money management, such as budgeting and credit-card usage, and would put their health in jeopardy by avoiding doctor visits and prescriptions because of costs.
Only 22 percent were deemed financially stable, meaning they were saving at a mainstream bank and steered clear of financial services that charge higher interest and fees, such as payday lenders. Members of this group were more likely to be white males, employed and college-educated.
No comments:
Post a Comment