Starting behind the curve:
The state of finances for millennials
MILLENNIALS
SPEND
For many millennials—aged 18
to 34—helping family members
financially is a responsibility they're
273
BILLION
$
happy to accept. But when added to
their other debts, it could create a
burden that may be difficult to carry.
TD Ameritrade's 2015 Financial
Support Survey has a lot of insight
each year
about millennials and where they
SUPPORTING A FAMILY MEMBER
stand with their finances.
Millennials are starting off with a lot of debt.
The tough combination of more debt and less income is giving
millennials a rough start to their adult financial lives.
The average
Class of 2015
college grad owes
Millennials aged
25 to 34 spend
an average of
$35K
$950
in student loans1
on their monthly
mortgage payment2
The average
household income is
$50K
per year for 34%
of millennials3
On top of that, they’re also
helping their families more.
Despite carrying higher levels of debt, millennials are providing more
financial support for their parents than any other generation.3
1 5 millennials
in
have provided financial support to a parent
over the past year.
ON AVERAGE, MILLENNIALS SPEND
18,250
$
per year
SUPPORTING A
FAMILY MEMBER
THIS ADDS UP TO ABOUT
PRIVATE
273 billion
$
2.2 million
people
per year
That’s enough to put 2.2 million people through four
years of school at a private college.4
What if they were to reallocate those dollars?
18,250
$
in support per year
STUDENT LOANS:
PAY
RETIREMENT:
20
20
$1.5K
per month
20
20
per month
20
20
$1.5K
SAVE
20
20
20
20
30 YEARS
23 MONTHS
$4M
$35K
STUDENT LOAN PAID OFF
SAVED FOR RETIREMENT
Paying $1,521 per month on the
If a millennial put $18,250 per year
average $35,051 in student loans
into a tax-deferred account with an
would result in a 23-month payoff
annual growth rate of 8%, they could
vs. 120 months at $371 per month.5
save nearly $4 million in 30 years.6
Millennials look to several places for
financial advice—sometimes they automate
their investments and sometimes they seek
in-person guidance, possibly because of the
extent to which they’re providing financial
support. It’s a lot harder to keep your head
above water if you have to support family
members and still try to tackle your debt.
Financial education and resources can go
a long way.
Matt Sadowsky
Director of Retirement and Annuities, TD Ameritrade
The increased financial burden means
they’re putting off other things.
Because they’re responsible for student loan debt, supporting
parents, paying a mortgage and more, millennials are delaying
several important life steps.3
39
delayed saving
money for retirement
FUTURE
TO-DO LIST
48
29
delayed
getting married
38
delayed buying
a house
delayed
having children
Are you a millennial?
Let TD Ameritrade help you stay on track.
Millennials who want to start making the most of what they have can turn
to TD Ameritrade for guidance with their investments.
Check out our retirement planning resources to start making a plan.
www.tdameritrade.com/retirement
1. http://blogs.wsj.com/economics/2015/05/08/congratulations-class-of-2015-youre-the-most-indebted-ever-for-now/
2. http://www.fool.com/investing/general/2015/03/23/heres-the-average-americans-mortgage-payment-by-ag.aspx
3. http://www.amtd.com/files/doc_downloads/research/TDA-Financial-Support-Study-2015.pdf
4. http://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064; figure determined according to
the College Board's estimated $31,231 per year for tuition and fees at a private college: $273 billion divided by
$124,924 (which is $31,231 multiplied by 4 years) equals approximately 2.2 million—or, 2.2 million people going to a
private college for 4 years at $31,231 per year.
5. https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
6. http://money.cnn.com/tools/savingscalc/savingscalc.html
TD Ameritrade Holding Corporation’s Financial Support Survey was conducted online between June 24 and July 6, 2015,
by Head Research, with 1,000 U.S.-based adults aged 18 and older.
Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC.
Research provider Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated
companies and are not responsible for each other’s products and services.
TD Ameritrade Holding Corporation (NYSE:AMTD). TD Ameritrade is a trademark jointly owned by
TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2015 TD Ameritrade IP Company, Inc.
All rights reserved. Used with permission.