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If you’ve got a son or daughter who just graduated from college, this may not be news to you. From CNBC:
Half of recent graduates ages 23 to 26 rely on financial support from their families to meet their current needs, according to new data from the Arizona Pathways to Life Success study.
Okay, so here’s the question: is this generation genuinely plagued by a different kind of economy, or are they just lazy and entitled? It would be nice to think, in a way, that it’s the latter. A little dose of reality can jump-start a lazybones. But the study suggests that it’s systemic:
In April, the unemployment rate for people ages 20 to 24 was 10.6 percent, and for those ages 25 to 34, 6.6 percent—higher than the overall unemployment rate of 5.8 percent for all adults age 20-plus. In addition, the average student loan debt for 2012 grads was $29,400, according to the Project on Student Debt.
And there’s this:
“Our data clearly showed that many young adults today may not be earning enough to make it on their own, even when working full time,” the study said. Benefits offered may be lackluster, too. In a webinar on the study, principal investigator Joyce Serido said much of the support is parents helping out with health insurance.
“This is a group that has really gotten whipsawed,” said Ted Beck, president and chief executive of the endowment. “Many of them started off college in the fall before the market crashed.” Their family finances were further affected graduating into a soft market. “They are getting their feet under them, but it’s taking longer than they might have otherwise,” he said.
Worse news, it seems like there’s a major shift in the expectations young people have about the future. They’re more pessimistic. And that’s a new thing for Americans.
91 percent said financial independence is an important goal, down from 95 percent who thought so in 2011. Meanwhile, the percentage of students who said they think they’ll never be self-sufficient more than tripled, from 0.6 to 2 percent. Grads also said that annual salary was less important when job-hunting, compared to two years ago.
That can’t be good. But here’s the question: how do you change it? How do you reach a population that A) votes reliably liberal and B) doesn’t believe that economic growth is possible?Published in