Majority of young adults too broke to invest
A majority of young adults are too broke to have any investments, according to a new study from Facebook Insights.
The survey found that 21-34 year-olds are 1.6-times more likely than Gen Xers or Baby Boomers to have no investments.
Young adults also said their No. 1 financial goal is paying off past debt: 43% of this group said this was their top financial priority, and 46% said being debt free is their idea of financial success.
Meanwhile, 57% said they preferred to pay primarily with cash versus credit cards; 25% of the group described credit cards as something that “worsens my financial standings.”
“Cautious (some would say excessively so) and remarkably responsible, Millennials are diligent in paying down debt, careful to avoid credit and dedicated to accumulating savings,” Facebook said.
Facebook used its audience insights tool to look at “the demographics and behaviors” of 21-34 year-olds on Facebook. They also analyzed at conservation data in public posts. Finally, 27,000 users responded to a poll put out by Facebook on financial subjects.
In general, the young adult age group was pretty evenly split on the state of their finances; Facebook found that 46% were “affluent,” or making at least $75,000. Sixty-nine percent of the survey’s audience was between 25 and 34.