Let’s face the facts, here.
Being a millennial may have many perks, but our generation also faces a mounting list of financial challenges and concerns — arguably more than any generation to come before us. For anyone feeling skeptical about that statement, consider this: Almost two-thirds of millennials say they’re living paycheque to paycheque and only 38% feel financially stable. Even further, Millennials, more than any other generation surveyed, feel the most insecure when it comes to their finances.
From lofty student loans to rent that seems to be increasing exponentially, millennials undeniably have some steep hurdles ahead of them. Experian reports that the 2017 average non-mortgage debt level across generations ranged from $6,963 all the way up to $30,334 and about 40% of millennials have credit card debt. Are we confident about our finances? Do we have the tools we need to balance everyday expenses alongside long-term plans and financial responsibilities? Are we even comfortable talking about these things? Are we utilizing all the resources available to us?
We took to social media to get a sense of exactly how our community feels when discussing their financial situation and, moreover, and how those fears might impact their plans for the future.
First things first, do you feel financially secure? If not, why?
Unsurprisingly, most respondents said no, naming job instability, living expenses, lack of savings as the primary cause.
Do you feel comfortable talking about money with loved ones?
On a more positive note, 67% of those polled said yes, while 33% admitted that financials aren’t a topic they’re comfortable discussing.
When asked to detail which financial concerns keep them up at night, our community named debt, the fear of market collapse, saving for a family, paying off school loans and credit cards, retirement and unaffordable rent as the most glaring concerns. Even further, 89% of respondents said the cost of living in Toronto, specifically, is out of control — and we’re struggling to keep up.
Do you see yourself starting a family? Or do financial fears hold you back?
This actually seems to be an especially common thread among millennials, with most admitting that, although they would like to start a family, the financial responsibility of it is definitely holding them back.
Rather than letting their relationship or emotional/mental ‘readiness’ dictate their family planning, one in five millennials are actively delaying having children because they feel they can’t afford a family. In an op-ed piece coined for ‘The Financial Diet’, author Meghan Koushik explains, “I’m 27, and most days, I feel like I’m still waiting for adulthood to start. I still live in a dorm room, with roommates; my possessions mostly amount to cheap IKEA kitchenware and thrifted J. Crew. And while my parents owned a home and had two kids at my age, I consider it an accomplishment I haven’t yet killed my latest succulent.”
Upon further questioning, we learned that 67% of our community tracks monthly spendings with their monthly income, while only 32% have a budget that they actively stick to. Even further, only 47% know how much they save and spend each year, while 53% admit that they should.
Recently, Toronto tied with Vancouver as Canada’s most expensive cities to live in. When grappling with a high-stakes rental market, we couldn’t help but wonder if our followers plan to buy in the future, or if continuing to rent seems more realistic. According to our polls, 63% want to buy, while 37% think they will continue to rent (whether they like it or not). Of course, we also have to look at things from the perspective of a tenant — if so many of us are renting, do we realize the importance of renters/tenant insurance? 85% of our community said yes; however, only 63% of those polled felt they truly understand what they’re covered for with their current policy. Even further, 38% don’t actually know what an insurance brokerage does.
Let’s dig into that a little deeper, shall we?
What are your biggest fears when it comes to not being covered?
Liability or disaster, paying out of pocket, theft of belongings and lack of security was the most common response, with one millennial follower explaining explicitly, “We have $15,000 in music gear and another $20,000 in technology and jewelry. If it was stolen, we would not be able to replace it.” We also asked our audience if they feel ‘insurance literate’, and only 47% said yes. Even further, when asked what they wish their insurance company provided them, the common thread was a desire for better coverage at a lower cost, along with a simplified breakdown of what comes with each policy.
Considering the relatively low cost of home insurance, not carrying coverage is definitely an unnecessary risk. Fortunately, getting covered doesn’t have to be complicated. In fact, companies like Surex are making it easier than ever before for millennials to feel secure.”
Getting a quote only takes a few minutes, along with automated rate comparison to ensure you get the best deal (because, as we’ve learned, living in Toronto isn’t cheap). Each quote can include the following:
- – Protection for your personal items from theft, loss or damage.
- – Personal liability coverage, in the unfortunate case, that someone is injured while at your home.
- – Living expenses, if you need to temporarily relocate due to damage or loss.
After being matched with an advisor (basically your dedicated insurance assistant) and comparing quotes, your advisor will personalize your home insurance to ensure it’s exactly the fit you need. Even better, your advisor will be there to answer any questions you might have, for as long as you have insurance with them. Sounds pretty straightforward, doesn’t it? Well, that’s because it is and, TBH, that’s how it’s supposed to be.