NEW YORK — After being hit by the 2008 recession, millennials are taking another one on the chin via financial downturn during the COVID-19 pandemic.
More than a decade after the housing market collapse, anyone born between 1981 and 1996 statistically has fewer assets than the baby boomer generation. Because of that, most millennials have put off investing in major life milestones.
"A lot of millennials became afraid of going into debt, they became kind of wary of credit cards and are hesitant to invest," said Julia Glum, staff writer at Money.com.
Now, 30 million Americans have filed for unemployment as a result of the nationwide coronavirus shutdown. Millennials have been affected the most with layoffs and pay cuts according to a Pew Research Study. This group is also the most racially diverse, with the African American and Hispanic population being his the hardest.
But there are some potential solutions out there as Tiffany Aliche, founder of The Budgetnista explains.
"You should be poised to pivot," she said.
"What am I going to look like on the other side of this? Is there a skill set I can tap into? Is there a degree that I can tap into to really usher myself into a marketplace where I can be viable?"
Millennials have now surpassed baby boomers as the country's largest living adult generation. Experts predict they will be able to bounce back, depending on how they handle this current crisis.
Glum suggests taking care of the essentials, building up an emergency fund, and tackling any high interest debt. Bot experts recommend not dipping into your 401k.
Get additional financial news and information at money.com.