Study: “Consumers are under tremendous financial pressure”

 

A new study, released last week, details the “tremendous financial pressure” that so many Americans are facing right now. In fact, millennials are doing far worse financially than generations before them, with student loans, rising rents and higher health care costs pushing their average net worth below $8,000.

 

The net worth of Americans aged 18 to 35 has dropped 34 percent since 1996, according to research released by Deloitte. This demographic is paying more for education and such basics as food and transportation — while incomes have largely flatlined.

 

“The vast majority of consumers are under tremendous financial pressure,” said Kasey M. Lobaugh, Deloitte’s chief retail innovation officer and lead author of the study. “That is particularly true for low-income Americans and millennials.”

 

Education expenses have climbed 65 percent in the past decade. Food costs have jumped 26 percent, health care is up 21 percent, housing jumped 16 percent and transportation rose 11 percent. And there are now expenses that most consumers didn’t have to account for 20 years ago — including smartphones and data plans.

 

» More than 60% of Millennials living paycheck-to-paycheck » 58% of U.S. has less than $1,000 in savings

 

Today’s 20- and 30-somethings spend about 17 percent of their incomes on education, health care and rent, compared with 12 percent a decade ago, the study found.  “Only 20 percent of consumers were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend,” the study found.

 

This is what EveryIncome is all about — helping consumers find their way to improving their income, and their overall financial knowledge. Over the next several months, we’ll be bringing you first looks at our new tools and educational content that will help the 78% of Americans who live paycheck-to-paycheck. Follow us on social (see links at the bottom) and join us on this journey!

 


Straight from The Source: Tedla Talk

Tedla “Ted” Mekonnen / Co-Founder + CEO, EveryIncome LLC

 

Happy June! It’s a time for a little relaxation, last days of school, Father’s Day and warm weather. But here at EveryIncome, we’re deep into planning our next steps into a whole new world, coming this Fall. We’re reinventing ourselves in a holistic way — where we bring the professionals and the consumers into the same ecosystem. We’re going to deliver personalized financial education to consumers, and help them to understand the role that professionals play in achieving outstanding financial results, and generating more income. Stay with us for this journey — the next few months are going to be very exciting!

 

Along the way, we’re meeting with outstanding organizations who are already working hard to improve the financial lives of consumers across the U.S. One of these is WorkingNation — an organization that exists to communicate the massive changes that are coming to the future of work and employment due to automation, robotics and other advances in technology. WorkingNation aims to bring the country together to create new jobs for a changing economy.

 

We’re going to share some amazing videos with you in the next few months, from Working Nation’s “Do Something Awesome” series. The one below is called “Changing Lives, Saving Lives.” Enjoy.

 


Summer Reminders

 

Last month, we introduced you all to Claire Akin — a content marketing expert focused on helping financial advisors improve their business via digital marketing.

 

In case you missed it: 5 Powerful Tools Your Website Needs

 

Coming this month — a series of articles by Claire about Search Engine Optimization — one of the biggest keys to success for any website, but especially for financial advisors. Check out our latest articles here.

 

We also introduced you to Enduring Hearts — an Atlanta-based, non-profit organization that funds research for pediatric heart transplants. They are working to cure transplant failure in children.

 

Enduring Hearts is the only organization dedicated solely to funding research to increase the longevity of pediatric heart transplants. The average heart transplant only lasts 12 years, so children may need 2-3 additional transplants throughout their lives. In just a few years, Enduring Hearts has already pledged more than $3 million for critical research.

 

» Please consider supporting Enduring Hearts here.

 


Ei Marketplace Sponsor Spotlight 

 

EJF Capital

 

EJF Capital LLC is an SEC-registered, independent, employee-owned investment management organization headquartered outside of Washington DC. EJF was founded in 2005 by Manny Friedman and Neal Wilson along with a team of professionals from Friedman, Billings, RamseyGroup, Inc. (FBR). The firm currently employs approximately 80 professionals across three offices globally (Washington DC, London, UK and Shanghai, China).

 

In addition to Mr. Friedman, the Fund is managed by Todd Pitsinger. Mr. Pitsinger was an associate of Mr. Friedman and Mr. Wilson at FBR as a Managing Director focusing on FBR hedge funds. Mr. Pitsinger is supported by a portfolio management team that is focused on investment analysis, research and trading.

 

Visit our Marketplace to learn more about EJF Capital and our other Sponsor partnerships, as well as our Asset Management Platform (AMP), our turnkey solution for asset managers and issuers.

 


Stay in Touch with EveryIncome on Social

 

The best way to stay up to date on content, webinars, events and more is to follow EveryIncome on social media:

 

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