Hey, everybody, so today we're going to talk about why millennials are broke
Hey, everybody, so today we're going to talk about why millennials are broke

and my nickname for millennials and the next generation are Henries,
and my nickname for millennials and the next generation are Henries,

which are high earners, not rich yet.
which are high earners, not rich yet.

At the time of this video, millennials are about the ages of 25 to 40.
At the time of this video, millennials are about the ages of 25 to 40.

And the truth is, millennials,
And the truth is, millennials,

especially toward
especially toward

the upper end of the range, are running out of time to build wealth.
the upper end of the range, are running out of time to build wealth.

Currently, millennials own five percent of the wealth in this country.
Currently, millennials own five percent of the wealth in this country.

But the shocking data is that millennial parents owned about twenty
But the shocking data is that millennial parents owned about twenty

two percent of the wealth when they were the exact same age.
two percent of the wealth when they were the exact same age.

That means that they had four point five times the amount of overall wealth
That means that they had four point five times the amount of overall wealth

than their children in the same age groups.
than their children in the same age groups.

Before I dove into this any further, please go ahead and click the like button.
Before I dove into this any further, please go ahead and click the like button.

It allows me to keep making these videos possible for you.
It allows me to keep making these videos possible for you.

So what is the real issue here?
So what is the real issue here?

Why are millennials falling behind? So I'm going to go over for reasons.
Why are millennials falling behind? So I'm going to go over for reasons.

The number one is student loan debt.
The number one is student loan debt.

Now, this is not a surprise to anybody.
Now, this is not a surprise to anybody.

I had student loans when I was in school, and I've said it before
I had student loans when I was in school, and I've said it before

and I'll say it again.
and I'll say it again.

The thing that sets most millennials back the most is their student loan debt.
The thing that sets most millennials back the most is their student loan debt.

What I believe earns you more money is learning a valuable skill.
What I believe earns you more money is learning a valuable skill.

You can do that through college, but you could also do that through
You can do that through college, but you could also do that through

a number of other ways that are obviously a lot less expensive.
a number of other ways that are obviously a lot less expensive.

Currently, the average student loan sits around forty thousand dollars
Currently, the average student loan sits around forty thousand dollars

per student with many students well over that amount.
per student with many students well over that amount.

And that forty thousand dollars over time could have been used to purchase a home
And that forty thousand dollars over time could have been used to purchase a home

or even invest it.
or even invest it.

And in many cases, it's hindering people from actually buying things
And in many cases, it's hindering people from actually buying things

once they get out of college.
once they get out of college.

And college, of course, just keeps going up and increasing over a 10 year period.
And college, of course, just keeps going up and increasing over a 10 year period.

College tuition has gone up 65 percent, while wage growth
College tuition has gone up 65 percent, while wage growth

has only went up about 26 percent during the same period of time,
has only went up about 26 percent during the same period of time,

creating more and more and more of a hardship to get these loans paid off.
creating more and more and more of a hardship to get these loans paid off.

With college prices increasing so much faster than wage
With college prices increasing so much faster than wage

growth, attending college and taking on loans is really a decision
growth, attending college and taking on loans is really a decision

that you're going to have to thoroughly consider now and of course, in the future.
that you're going to have to thoroughly consider now and of course, in the future.

Number two, credit cards and other debt credit
Number two, credit cards and other debt credit

cards were not always the popular way to pay for things.
cards were not always the popular way to pay for things.

20 years ago, about a third of the population didn't even have a credit card.
20 years ago, about a third of the population didn't even have a credit card.

Now credit cards are a commodity item.
Now credit cards are a commodity item.

Everyone has them.
Everyone has them.

And while they can be used responsibly, many times
And while they can be used responsibly, many times

people can accumulate debt from using them.
people can accumulate debt from using them.

Millennials in particular have on the average four thousand dollars
Millennials in particular have on the average four thousand dollars

in credit card debt.
in credit card debt.

Right now, these cards come with an extremely high interest rate,
Right now, these cards come with an extremely high interest rate,

and they're really prohibiting millennials from learning on
and they're really prohibiting millennials from learning on

how to budget their own money. The third one is home ownership.
how to budget their own money. The third one is home ownership.

And you guys probably know homeownership
And you guys probably know homeownership

is definitely down for this generation.
is definitely down for this generation.

And as I have done four videos on previously, I think the American dream
And as I have done four videos on previously, I think the American dream

of owning a home is getting harder and harder to achieve.
of owning a home is getting harder and harder to achieve.

Home prices are skyrocketing and the government is only making them
Home prices are skyrocketing and the government is only making them

increase faster with low rates and incentive programs.
increase faster with low rates and incentive programs.

And now, of course, with all the construction costs and labor
And now, of course, with all the construction costs and labor

going up, it's becoming even harder to put things in perspective.
going up, it's becoming even harder to put things in perspective.

Only about forty eight percent of millennials actually
Only about forty eight percent of millennials actually

own a home, while at the same time, the boomer generation,
own a home, while at the same time, the boomer generation,

which are their parents, was it about seventy seven percent?
which are their parents, was it about seventy seven percent?

That's a big, big difference.
That's a big, big difference.

So why make such a big deal out of homeownership?
So why make such a big deal out of homeownership?

Well, owning a home is a big deal when you are discussing becoming wealthy.
Well, owning a home is a big deal when you are discussing becoming wealthy.

There are a couple of reasons for this.
There are a couple of reasons for this.

First of all, getting a fixed rate mortgage on a home will allow you to lock
First of all, getting a fixed rate mortgage on a home will allow you to lock

in a set payment over a 30 year period that will hedge inflation.
in a set payment over a 30 year period that will hedge inflation.

You can never do this by renting.
You can never do this by renting.

Renters typically have annual rent increases on their rent.
Renters typically have annual rent increases on their rent.

This locked in rate allows any additional money you earn at work
This locked in rate allows any additional money you earn at work

to be able to be invested versus going toward those rental increases.
to be able to be invested versus going toward those rental increases.

Secondly, most retirees have almost all of their money in their home,
Secondly, most retirees have almost all of their money in their home,

and that home appreciates generally over time, and
and that home appreciates generally over time, and

they're paying off the mortgage each and every month.
they're paying off the mortgage each and every month.

So the principle is actually going down.
So the principle is actually going down.

The average home has increased thirty two percent over the last 20 years.
The average home has increased thirty two percent over the last 20 years.

That means when a retiree goes to downsize, they have increased
That means when a retiree goes to downsize, they have increased

their cash passively in their home by approximately thirty two percent.
their cash passively in their home by approximately thirty two percent.

Lastly, into retirement, that home can be paid off.
Lastly, into retirement, that home can be paid off.

This is a big deal for retirees.
This is a big deal for retirees.

It was certainly the case from my own mother,
It was certainly the case from my own mother,

who had not a lot of cash, but had a lot of equity in her home
who had not a lot of cash, but had a lot of equity in her home

and actually used it to pay for her next step.
and actually used it to pay for her next step.

A paid off home means you don't need much money to live on
A paid off home means you don't need much money to live on

as a lifelong tenant into retirement.
as a lifelong tenant into retirement.

You will need to continue working or have roommates to work.
You will need to continue working or have roommates to work.

Within a Social Security budget,
Within a Social Security budget,

the last thing is millennials aren't even investing.
the last thing is millennials aren't even investing.

And if you're not going to invest in something, there's no way
And if you're not going to invest in something, there's no way

that you're going to stay ahead of the inflation
that you're going to stay ahead of the inflation

or become wealthy over a long period of time.
or become wealthy over a long period of time.

And I understand it
And I understand it

because they just don't have a lot of excess discretionary funds to do it.
because they just don't have a lot of excess discretionary funds to do it.

So they're not even learning.
So they're not even learning.

And to start. Millennials are on a much tighter budget
And to start. Millennials are on a much tighter budget

than previous generations due to these inflation versus wages.
than previous generations due to these inflation versus wages.

So wages have gone up by only 10 percent in the past 20 years.
So wages have gone up by only 10 percent in the past 20 years.

While in that exact same time period, inflation has gone up 44 percent.
While in that exact same time period, inflation has gone up 44 percent.

And in the last few months, it's gone up even more.
And in the last few months, it's gone up even more.

So this puts a massive squeeze on millennials bank account
So this puts a massive squeeze on millennials bank account

and their ability to save to invest, because that money that they're saving
and their ability to save to invest, because that money that they're saving

actually buys less from a purchasing power.
actually buys less from a purchasing power.

Secondly, the millennial generation isn't good at budgeting.
Secondly, the millennial generation isn't good at budgeting.

Now, I wasn't really that great at that age as well, but I had to learn it.
Now, I wasn't really that great at that age as well, but I had to learn it.

Previous generations had to save for things
Previous generations had to save for things

because they didn't have a credit card.
because they didn't have a credit card.

But millennials can purchase something without having the money, making them
But millennials can purchase something without having the money, making them

more in debt, but also less accountable for their own money.
more in debt, but also less accountable for their own money.

Now, this channel, as you guys know, isn't about complaining and being victims.
Now, this channel, as you guys know, isn't about complaining and being victims.

This channel is to empower you so you can become a wealthy millennial.
This channel is to empower you so you can become a wealthy millennial.

I've done many videos on how to budget and learning out how to invest on
I've done many videos on how to budget and learning out how to invest on

castling properties, and we'll attach them below in the show notes.
castling properties, and we'll attach them below in the show notes.

While many of the millennials are broke, you don't have to be,
While many of the millennials are broke, you don't have to be,

but you can't put off correcting your financial future.
but you can't put off correcting your financial future.

These decisions need to start today.
These decisions need to start today.

It is going to be a tougher and tougher road ahead for you and this next economy.
It is going to be a tougher and tougher road ahead for you and this next economy.

And you need to understand how you can get ahead.
And you need to understand how you can get ahead.

Start with learning how to budget and save money.
Start with learning how to budget and save money.

And then what to do with that money.
And then what to do with that money.

I have attached the videos below so you can get a head
I have attached the videos below so you can get a head

start on your investing and your own financial education.
start on your investing and your own financial education.