There is a lot of talk right now about wage stagnation. Consumers are finding it harder to make ends meet, even if they have good jobs, because their wages have not increased at the same pace that prices have increased. A friend of ours, for example, is making just 3 percent more than she did eight years ago. According to the Bureau of Labor Statistics, the consumer price index has increased more than 10 percent during that same period.
It is very important for young adults to exercise proper care when it comes to finances and debt. What happens to a person financially when they are a young adult can set the tone for their financial future and can have the potential to have some long-lasting impacts.
We sometimes lose sight of the fact that not all foreclosures are related to the housing bust or the mortgage servicing scandal. There were foreclosures long before 2008, just as there will be foreclosures long after the market returns to normal and lenders have finally cleaned up their acts.
Financial distress is something every generation has to deal with in one way or another. That being said, the burdens on young adults nowadays are rather unique, particularly with the continual increase in the cost of education and student loan debt. According to the Federal Reserve Bank of New York, student loan balances increased by roughly $100 billion between September 2013 and September 2014. The problem is bound to only get worse in the years to come.