Millennials are the generation that saves the least out of all others that have come before them since World War II. They own less property and have fewer savings than previous generations. They are also the generation that has experienced the most economic upheaval; from growing unemployment, a major recession, government spending cuts and a constantly increasing cost of living. Essentially, young people, especially those from a socio-economic background, are more vulnerable to financial distress despite their intention to be more financially secure.
Background of the Problem
Millennials from a lower socio-economic background are less academically qualified and have skills that only afford them lower level jobs, and as a result, face the challenge of securing stable well-paying jobs. The challenge is made even more complicated by the global economic slowdown which has affected the UK economy. Despite having a low unemployment rate, the UK’s real wages have stagnated, and even declined. Additionally, the value of the sterling pound declined following the Brexit vote, leading to an increase in consumer prices. These economic challenges, when compounded, have a severe negative effect on millennials who due to their socio-economic background have a low earning capacity.