Nearly two-thirds of Millennials earning over $100K a year report living ‘paycheck-to-paycheck’

[Fishrrman]

https://patriotdailypress.org/2021/07/13/nearly-two-thirds-of-millennials-earning-over-100k-a-year-report-living-paycheck-to-paycheck/

Nearly two-thirds of Millennials earning over $100K a year report living ‘paycheck-to-paycheck’
July 13, 2021

High-earning Millennials have a major spending problem.

What are the details? A new survey conducted by PYMENTS and LendingClub, which analyzed the financial data of roughly 30,000 Americans, found that 60% of Millennials making more than $100,000 a year still said they were living paycheck-to-paycheck, Business Insider reported.

That surprising figure was not far off from the 70% of Millennials in total who reported living paycheck-to-paycheck. Millennials are individuals born between 1981 and 1996.

In the survey, those living paycheck-to-paycheck were defined as consumers who “manage to pay their monthly bills but have little left over.”

According to the report, Millennials were not the only demographic of high earners who still lived paycheck-to-paycheck. In total, 40% of those earning more than $100,000 a year still struggled to make ends meet and have money left over.

But the fact that so many Millennials seem to struggle financially is indicative of a problem with exorbitant spending, not insufficient income, the report argued. Put simply, most Americans have not been saving enough money to avoid a paycheck-to-paycheck lifestyle.

The survey found that “70% of consumers have less than $15,000 in savings, and one-third of all consumers have less than $1,000,” or not a sufficient a cushion to shield against unexpected expenses.

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[Kamaji]

Student loan payments - the modern world's equivalent of indentured servitude.

[Hoodat]

Millennial choose to live paycheck to paycheck because they are cynical about the future.  They have been taught not to trust the financial sector while at the same time being shown not to trust government.  Millennial know better than any other demographic that Social Security is complete BS.

[berdie]

Truthfully, I can see how this happens. I look at home prices, rental prices, car prices, etc. and shudder. Add on student loans.

And we can now add food and gas prices.

[mountaineer]

My guess is that they're spending a lot of money on nonessentials. Or, one might say, they treat a lot of things as essential when they really aren't.

One of the advantages of having parents who lived through the Great Depression and talked about it is that I have a healthy appreciation for frugality.

[libertybele]

Truthfully, I can see how this happens. I look at home prices, rental prices, car prices, etc. and shudder. Add on student loans.

And we can now add food and gas prices.

However, consider that home prices, rental prices, etc., are the same for those in the social security age bracket.  Prices aren't any cheaper for them and yes food and gas prices are astronomical.  The two of us live on a fraction of $100k.

Also consider those with children are now receiving up to $300.00 per child.  Gee, cry me a river.

I hadn't gone grocery shopping in a couple of weeks, and I was shocked.  $5.00 for a bag of lettuce and another $5.00 for a small bag of potato chips.  Yikes!!!! Our meat and frozen vegs supply is getting to where I need to replenish the freezers (not looking forward to that).

The packages are shrinking as well.  The carbonated flavored water, (most brands) runs about $3.99 for a 12 pack. Now the carbonated flavored water has shrunk to 8 packs and runs $3.99 -- 4 cans less for the same price!

[DefiantMassRINO]

At that income bracket, 40% paycheck goes to payroll deductions - federal income tax, social security tax, medicare tax, state income taxes, life insurance, health insurance, retirement ... that's before you pay mortage, property taxes, and other monthly bills and daily costs of living.

[berdie]

However, consider that home prices, rental prices, etc., are the same for those in the social security age bracket.  Prices aren't any cheaper for them and yes food and gas prices are astronomical.  The two of us live on a fraction of $100k.

Also consider those with children are now receiving up to $300.00 per child.  Gee, cry me a river.

I hadn't gone grocery shopping in a couple of weeks, and I was shocked.  $5.00 for a bag of lettuce and another $5.00 for a small bag of potato chips.  Yikes!!!! Our meat and frozen vegs supply is getting to where I need to replenish the freezers (not looking forward to that).

The packages are shrinking as well.  The carbonated flavored water, (most brands) runs about $3.99 for a 12 pack. Now the carbonated flavored water has shrunk to 8 packs and runs $3.99 -- 4 cans less for the same price!

I don't disagree that the prices are the same for retired individuals. Those that don't have paid for homes/automobiles and reduced debt are in the same boat with the millennials. Our Pay check to paycheck level is much lower. My neighbor (75 y/o) has to work over over 40 hours a week at a very physical job to make ends meet since her  SS is inadequate.

I totally agree about groceries. I went to the store last week after a two week break and was appalled! Produce and meat prices were were stupid crazy. The only positive I can find is that I do know how to cook (as I'm sure you do) and don't have to rely on premade food. I am not sure that a lot (not all) of the younger generation knows how to cook. They think gravy comes in a jar and the only way to get a "home cooked meal" is frozen and put in the microwave. Or at a restaurant. Both of those alternatives are pretty expensive.

[libertybele]

At that income bracket, 40% paycheck goes to payroll deductions - federal income tax, social security tax, medicare tax, state income taxes, life insurance, health insurance, retirement ... that's before you pay mortage, property taxes, and other monthly bills and daily costs of living.

I looked at the federal tax bracket for someone making $100k and that bracket is 24%.  So, as for the actual payroll deduction, I am not sure, but the social security deduction is about 6% and another 1.5% for medicare.  So I think that the 40% deduction may be a little steep ... but regardless the taxes are the same for various age groups and most of us have the same expenses; mortgage, home owners insurance, health insurance, flood insurance, property taxes, etc., and daily cost of living.

Under Biden it's only going to get worse.  Guarantee it.

The only difference in age brackets is  that those who have children are getting up to $300.00 per child ....  which not EVERYONE is getting and again, most of us have the same expenses.

[berdie]

The only difference in age brackets is  that those who have children are getting up to $300.00 per child ....  which not EVERYONE is getting and again, most of us have the same expenses.

I have read that the $300 a month  "stimulus" for children is actually a monthly payment for the child tax credit that is normally received when a tax return is filed.

I might have misunderstood.

[DB]

I looked at the federal tax bracket for someone making $100k and that bracket is 24%.  So, as for the actual payroll deduction, I am not sure, but the social security deduction is about 6% and another 1.5% for medicare.  So I think that the 40% deduction may be a little steep ... but regardless the taxes are the same for various age groups and most of us have the same expenses; mortgage, home owners insurance, health insurance, flood insurance, property taxes, etc., and daily cost of living.

Under Biden it's only going to get worse.  Guarantee it.

The only difference in age brackets is  that those who have children are getting up to $300.00 per child ....  which not EVERYONE is getting and again, most of us have the same expenses.

Factor in state taxes and sales taxes...

[libertybele]

I have read that the $300 a month  "stimulus" for children is actually a monthly payment for the child tax credit that is normally received when a tax return is filed.

I might have misunderstood.

Regardless,  it is still a benefit received that not everyone gets. Obviously, those without children and those with adult children.

[jmyrlefuller]

Truthfully, I can see how this happens. I look at home prices, rental prices, car prices, etc. and shudder. Add on student loans.

And we can now add food and gas prices.

Just think about where all those six-figure jobs are: in very densely populated, urban and suburban areas. (Oil fields are an exception. But even there, boomtowns will drive up the cost of living just as badly.) Costs are thus through the roof.

You go outside of that area, and costs of living drop precipitously... but so do wages.

[libertybele]

Factor in state taxes and sales taxes...

Ok ... that too, but the point being ... regardless of age, state taxes (FL not included) and sales taxes are paid by everyone.  Millennials don't have it any rougher than anyone else.  As for their cost of tuition; they have a choice; go to college and pay the costs, or don't go to college and avoid the cost. We paid for our kids to go to college and no one bailed us out. We bought a pre-paid college plan when they were younger that covered partial tuition (lab fees not included) and dormitory.  Books, food, etc., weren't covered.  Both of my kids worked while they went to school to help cover the costs. 

Nope, I don't feel sorry for the Millennials. 



       

[Restored]

Student loan payments - the modern world's equivalent of indentured servitude.

indentured servitude from living 4 years at a country club, partying at a frat house.

[Wingnut]

indentured servitude from living 4 years at a country club, partying at a frat house.

or...7 Years down the drain.  Might as well join the F'n Peace Corps.

[libertybele]

indentured servitude from living 4 years at a country club, partying at a frat house.

 

[GtHawk]

Student loan payments - the modern world's equivalent of indentured servitude.

Well not just that, Millennials and the following generation Z live for the moment, they are all about eating out not in, coffee bought at Star*ucks not brewed at home, upscale bars and entertainment, expensive vacations, gadgets and always the next new gadget bigger TV, leasing expensive cars so they look good. Saving for the future and buying their own home just isn't their thing because they would have to cut back on their toys and fun

[roamer_1]

Student loan payments - the modern world's equivalent of indentured servitude.

And McMansion mortgages, and car payments, and every other thing bought on credit, making payments... and every kind of subscription and services automatically debited from your bank accounts. And ready-made meals, take-out, and every other sort of convenience.

And a six dollar cup of coffee every day...

I know. I seen me do it.
I LIVE on less than I once spent per month on coffee.

[libertybele]

Well not just that, Millennials and the following generation Z live for the moment, they are all about eating out not in, coffee bought at Star*ucks not brewed at home, upscale bars and entertainment, expensive vacations, gadgets and always the next new gadget bigger TV, leasing expensive cars so they look good. Saving for the future and buying their own home just isn't their thing because they would have to cut back on their toys and fun

That sounds about right. Times have changed.  When we first married and after we had two children, we had a whopping $30 a week after our bills were paid -- that went for food, diapers, etc.  Yes, we were broke, but our bills were paid and we stretched our dollars.  I consider us one of the very lucky ones, my hubby worked for a gov't contractor and every 3 months he was given a Cost Of Living Allowance check -- we banked those checks for a couple of years and were able to put a down payment on a home .... the rest is history. Those were the times under Reagan. I felt secure, safe  and never dreamed that America would be in the shape that she's in.  Millennials are in for a major shock!

[roamer_1]

Well not just that, Millennials and the following generation Z live for the moment, they are all about eating out not in, coffee bought at Star*ucks not brewed at home, upscale bars and entertainment, expensive vacations, gadgets and always the next new gadget bigger TV, leasing expensive cars so they look good. Saving for the future and buying their own home just isn't their thing because they would have to cut back on their toys and fun

Heh. GMTA

They want better than their daddy, and they want it right now.All for the low low monthly price of...

[roamer_1]

That sounds about right. Times have changed.  When we first married and after we had two children, we had a whopping $30 a week after our bills were paid -- that went for food, diapers, etc.  Yes, we were broke, but our bills were paid and we stretched our dollars.  I consider us one of the very lucky ones, my hubby worked for a gov't contractor and every 3 months he was given a Cost Of Living Allowance check -- we banked those checks for a couple of years and were able to put a down payment on a home .... the rest is history. Those were the times under Reagan. I felt secure, safe  and never dreamed that America would be in the shape that she's in.  Millennials are in for a major shock!

That's right. I came up poor, and married poor... I know how it is done... But one of my businesses took off, and I done what folks with money do. It is an easy path, paved, well traveled,and high speed... The problem is there ain't no off ramp. And you're headed straight to hell.

[jmyrlefuller]

That's right. I came up poor, and married poor... I know how it is done... But one of my businesses took off, and I done what folks with money do. It is an easy path, paved, well traveled,and high speed... The problem is there ain't no off ramp. And you're headed straight to hell.

Good luck doing that these days!

[libertybele]

Good luck doing that these days!

@jmyrlefuller all I can say is my bet is that you'll get married! When it happens, I'll be the first to tell you "I told you so"!

[roamer_1]

Good luck doing that these days!

Actually, since my divorce, I have had four shots at new marriage and I am (for all intents and purposes) poor as a church mouse. I have 20 acres under development off-grid, an 1100 ft2 house here close to town, and I own both of those free and clear... And my business which has been all but destroyed. Totally on my butt.

And I ain't likely to fix that. No intention to. I want to be poor. I want free time for hunting and fishing and gardening and foraging.

That means I have to quit chasing after the almighty buck and worry about subsistence.

And like I said, four good shots at gals willing to do the same, 2 of them extremely serious.

But then, I am looking specifically for a hilljilly. Nothing else will do. I want a gal that wants to live up in the holler, off grid, and way the hell out there. And there are some to pick from that know that life and want it.

So, no pal, money ain't the problem.

[mountaineer]

Well not just that, Millennials and the following generation Z live for the moment, they are all about eating out not in, coffee bought at Star*ucks not brewed at home, upscale bars and entertainment, expensive vacations, gadgets and always the next new gadget bigger TV, leasing expensive cars so they look good. Saving for the future and buying their own home just isn't their thing because they would have to cut back on their toys and fun

If they see things like the latest iPhone and other electronics, home-delivered meals and eating out (never preparing one's own meals, in other words), clubbing, and vacationing as necessities - and don't consider saving equally necessary - then it's not surprising they have no money. And I have no sympathy.

[DefiantMassRINO]

Taxes on payroll income:
Federal Income Tax - 24%
Social Security Tax - 6.2%
Medicare Tax - 1.45%
State Income Tax - 5.0%

Taxes paid with remaining income:
Local Property Tax - 12% ($12,000 [$20 per $1000])
Sales Tax - 5.0% state, 2.5% local = 7.25%
Meals Tax - 5.0% state, 2.5% local = 7.25%
State Gas Tax - $0.24/gallon
State Underground Gas Storage Cleanup Fee - $0.026/gallon
Federal Gas Tax - $0.183/gallon
State Wireless Phone Tax - 10.32%
Federal Universal Service Fund (Wireless Phone Tax) - 9.83%

[thackney]

Taxes on payroll income:
Federal Income Tax - 24%
Social Security Tax - 6.2%
Medicare Tax - 1.45%
State Income Tax - 5.0%

Taxes paid with remaining income:
Local Property Tax - 12% ($12,000 [$20 per $1000])
Sales Tax - 5.0% state, 2.5% local = 7.25%
Meals Tax - 5.0% state, 2.5% local = 7.25%
State Gas Tax - $0.24/gallon
State Underground Gas Storage Cleanup Fee - $0.026/gallon
Federal Gas Tax - $0.183/gallon
State Wireless Phone Tax - 10.32%
Federal Universal Service Fund (Wireless Phone Tax) - 9.83%

To make it even worse, every product you buy has similar levels of tax imbedded in the cost, paid by you.

[sneakypete]

 

most of us have the same expenses; mortgage, home owners insurance, health insurance, flood insurance, property taxes, etc., and daily cost of living.

@libertybele

Nope,don't think so. Most of us who are retired are of the generation taught to work to be debt-free so you could be comfortable when you retire.

There is a reason I worked all the 10-12 hour days I could get back when I was still working. My house and 8 acres were paid for in 1980. I did borrow money on them again in 85 or so to put a new roof on the house and build a 1800 sq ft workshop,get it wired,plumbed,air-conditoned,and heated,but had that paid off again by 1990. Damn good thing,too,because it was shortly after that I was forced into retirement on medical disability.

I don't personally know of anyone that is retired and still owes money on their house. Franky,I don't even understand the concept,although I know there are no doubt plenty of people out there that just don't worry about owing money.

[sneakypete]

And McMansion mortgages, and car payments, and every other thing bought on credit, making payments... and every kind of subscription and services automatically debited from your bank accounts. And ready-made meals, take-out, and every other sort of convenience.

And a six dollar cup of coffee every day...

I know. I seen me do it.
I LIVE on less than I once spent per month on coffee.

@roamer-1

I admit to having a stupid truck payment on the 2016 Silverado I bought new,but I could easily afford it,and needed something reliable with a warranty in case I had to start making the 120 mile round trips to the VA hospital again.

It is now worth a lot more than I owe on it,and it mostly sits in the yard while I use a 03 4 cylinder Ranger for daily driving locally,and it will probably continue to sit idle unless I need to make a trip of more than 40 miles or so,and need something more comfortable than the Ranger.

Actually,I have always seen the Silverado as more of a tool I might need than a daily driver. Might even sell it to my ex,who wants to buy it. Last time I was hospitalized,she drove it to the hospital to pick me up and bring me back home,and loved it.

Selling it would free up some monthly money,but it would have zero effect on my life.

[roamer_1]

@roamer-1

I admit to having a stupid truck payment on the 2016 Silverado I bought new,but I could easily afford it,and needed something reliable with a warranty in case I had to start making the 120 mile round trips to the VA hospital again.

It is now worth a lot more than I owe on it,and it mostly sits in the yard while I use a 03 4 cylinder Ranger for daily driving locally,and it will probably continue to sit idle unless I need to make a trip of more than 40 miles or so,and need something more comfortable than the Ranger.

Actually,I have always seen the Silverado as more of a tool I might need than a daily driver. Might even sell it to my ex,who wants to buy it. Last time I was hospitalized,she drove it to the hospital to pick me up and bring me back home,and loved it.

Selling it would free up some monthly money,but it would have zero effect on my life.

@sneakypete

As long as I can fix it, or have a son or grandson that can, There ain't a single chance in hell I would buy a new rig, even if I could afford it. I am just oriented differently than that.

There is always something coming down the river (figurative) that is busted somehow, that I can pick up for a song, debt free. It will never make sense to me to buy new.

Besides, what I need the truck to be is not available. What I want the truck to do would inevitably have to be added to it.

Right now I am going through an old hay truck - I had thought it was a 2T, but it turns out it is a 5T with air brakes... The air brakes threw me off, but the intention is to cut the bed off, mount a pickup bed or flatbed on it, drop a Cummins 12v in it with a set of military axles... I am fixing to build the last truck I will ever need.

And even with the big iron, and the diesel, I will get it done nearly (or should I say, comparatively) for free. Why should I pay them azzholes more for a tinfoil replica of a truck?

Don't make no sense.

It is very rare that I buy anything new. certainly no big ticket item. Certainly no computer, certainly no furniture.
My kid just bought me a new air conditioner... I am pretty sure that is the ONLY thing that has entered this house new over 400 bucks. Very rare.

[Hoodat]

Student loan payments - the modern world's equivalent of indentured servitude.

It is now that the federal government has monopolized the student loan business.  Rates are a lot higher too, which you would expect with a monopoly.