Millennials and money: Financial preparedness and money management practices before COVID-19
Precarious financial behaviors, coupled with low financial literacy, have left many millennials ill-equipped to face a severe economic crisis.
In 2018, when the economy was expanding and the economic collapse due to the coronavirus pandemic was still a long way off, most millennials were already stressed about and struggling with their personal finances. This report sheds light on the factors contributing to millennials’ financial fragility, with an eye toward helping them prepare for current and future economic challenges.
The report’s findings are based on data from the National Financial Capability Study (NFCS), a triennial survey that provides a baseline measure of American adults’ financial capability. The NFCS is nationally representative and includes more than 27,000 observations, allowing for rigorous analysis of population subgroups such as millennials (defined here as adults age 18–37).
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