According to a new study by Money Under 35, young adults are not only financially healthy but also actively focused on saving and managing their credit. In fact, young adults are generally doing well, most of them are rated in “good” financial health, according to the report. Many are starting families, saving money and managing their finances. Financial health increases over time as young adults gain education, build incomes and repay student loans.
Starting a family or spending time with family ranks as the most important of six life goals for a leading 29% of young Americans aged 22-35, closely followed by being happy, which is the top goal for 28% of Americans of this age, according to a study from Navient. Being debt-free is also a much greater goal than home ownership or career advancement, says the report, though the financial health of the respondent appears to have an impact on the ranking of these goals.
Millennials Most Important Life Goal (“Most Important”; US Adults Age 22-35)
Percent Rating Most Important/Financial Health
Most Important Life Goal
Excellent Financial Health
Starting a family or spending time with family
Being debt free
Owning a home
Able to travel anytime
Source: Navient, December 2015; (Financial Health based on 15 objective and behavior indicators)
The study was based on a survey conducted by Ipsos of 3,006 young Americans aged 22-35, constructing a “financial health index” based on 15 objective and behavioral indicators, then segmented the sample into three groups of financial health based on those index scores. One in 5 respondents were classified as being in “excellent” financial health, with 63% falling in the “good” category and the remaining 17% determined to be in “poor” financial health.
Fewer than one in 10 with a bachelor’s or advanced degree is in “poor” financial health (8% bachelor’s, 5% advanced) compared to two in 10 of those who did not achieve a degree (20% high school or less, 21% some college, no degree).
Those with higher levels of education are more likely to get married; borrowing for college does not deter family formation.
Men and women continue to have different rates of full-time employment, and pay varies substantially within the same professional field.
Generally, young adults are more satisfied with their life and health than they are about their current job or income, but they are more optimistic about future prospects for income and career, concludes the report.
For (considerable) additional information about the study, please visit here.