Millennial’s Spending Hobbled by Student Debt
Millennial’s spending habits have been driving business leaders crazy, but not because the youngest generation in the workforce is irresponsible with their cash.
On the contrary, millennials are turning out to be the most frugal demographic since the so-called Greatest Generation that came of age during the depression.
That is because of the huge student-debt cloud that hangs over them, said the CEO of consumer-advisory firm Distill.
She spoke this week at the Turnaround Management Association’s Las Vegas conference for investors in distressed assets.
College loans are the 2nd-largest class of debt behind mortgages and ahead of credit card and auto loans. That is a Key reason why a more optimistic retail outlook remains questionable, even after the best Holiday Season in more than a decade and strong employment and home values underpin US economic activity.
Employers might want to think about using windfalls from the new tax cuts to help workers make student-loan payments. Such a measure could go further than an extra contribution to retirement plans and help reduce high workplace turnover, she said.
At the end of the day, what retailers could really use is something they will have trouble providing: less anxiety. Consumers spend when they’re sad or happy, but not angry or afraid.
Have a terrific weekend.