MONEY Millennials

How to Set Financial Priorities When You’re Young and Squeezed

man counting coins
MichaelDeLeon—Getty Images

You have a lot of demands on your money—and not a lot of it. Here's what to do first.

The most financially challenging state of life is not retirement, it is early career.

That’s the time when your salary is still probably low, but you have the longest list of expenses: career clothes, cell phone bills, your first home furnishings, cars, weddings, rent—need I go on? You probably don’t have enough money to pay for all of that at once, unless your parents have set you up very well or you are a junior investment banker.

The rest of us have to make choices with our limited “discretionary” income. Here is a rough priorities list for newbies who have shopping lists that are bigger than their bank accounts.

First, feed the 401(k) to the match, not the max. If your employer matches your contributions, make sure that your paycheck withdrawals are high enough to capture the entire company match. That is free money. If you have enough money to contribute more to your 401(k), that is a good thing to do, but only if you’re able to cover other key expenses.

Invest in items that will improve your lifetime earning power. A good interview suit. An advanced degree. The right electronic devices and services for the serious job hunt.

Pay off credit card balances. Chasing those “balance due” notices every month will kill just about any other financial goal you have. If you’re carrying significant credit card balances, abandon all other extra savings and spending until you’ve paid them off, in chunks as large as possible.

Put money into a Roth individual retirement account. The younger you are and the lower your tax bracket, the better this works out for you. Money goes in on an after-tax basis and comes out tax-free in retirement. You can withdraw your own contributions tax-free whenever you want. Once the account has been in existence for five years, you can pull an additional $10,000 out, tax-free, to buy a home. It’s nice to have a Roth, and the younger you start it the better.

Save for a home down payment. Homeownership is still a smart way to build equity over a lifetime. New guidelines will once again make mortgages available to people who make downpayments as low as 3%. Even though interest rates are still at unrewarding lows, it’s good to amass these earmarked funds in a savings or money market account.

Pay down high-interest student loans. If you had private loans with interest rates over 8%, find out whether you can refinance them at a lower rate. If not, consider paying extra principal to burn that costly debt more quickly. Don’t race to pay off lower-interest student loans; the interest on them may be tax deductible, and there are better places to put extra cash.

Buy experiences, not things. Still have some money left? Fly across the country to attend your college roommate’s wedding. Take road trips with friends. Spend money to join a sports team, theater group, or fantasy football league. Focus your finances on making memories, not acquiring things—academic research holds that you get more happiness for the dollar by doing that, and you’ll probably be moving soon anyway.

Buy a couch. For now, make this the bottom of your list. Sure, everyone needs a place to sit, but there’s nothing wrong with living like a student just a little bit longer. If you defer expensive things for a few years while you put money towards all the higher priorities on this list, you’ll be sitting pretty in the future.

UPDATE: This story has been updated to clarify that Roth IRA holders can withdraw their own contributions at any time and do not have to wait until the account is five years old.

TIME

How to Get a Job Much, Much Faster

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Getty Images

This is a no-brainer way to boost your job search

A lot of Americans, especially young adults, still have trouble landing work in today’s economy. New research suggests one way to overcoming unemployment is something anybody can do: volunteer.

A forthcoming paper in the Journal of Career Assessment says unemployed young adults who volunteer find new jobs faster. Lead author Varda Konstam, professor emerita in the counseling and school psychology department at the University of Massachusetts Boston says the findings “do suggest significant association between volunteering and finding employment.”

In a survey of more than 200 unemployed young adults, Konstam finds that the ones who volunteer seem to have an edge on their counterparts. “Those who elected to volunteer, even for a minimal investment in time… were more likely to procure employment 6 months later,” she writes. This finding holds true across participants’ careers, skill sets and other demographic differences.

And you won’t even have to take that much time away from your job search to reap the benefits. Just a couple hours of volunteering a week is enough to make a difference, Konstam finds. Among study participants who didn’t volunteer, almost three-quarters were still looking for work six months later. But among those who volunteered — even those who did for just two hours a week or less — nearly half had landed jobs. While Konstam points out that her results don’t necessarily imply causation, that’s a big difference between the two groups.

There could be a few reasons behind this connection. Konstam points to the much-discussed “degree inflation” in higher education; today, just cranking out four years after high school doesn’t necessarily mean you’re equipped to compete in today’s labor market, even as more low-level jobs are demanding that applicants come with college already under their belts.

Since a degree alone doesn’t convey job worthiness anymore, Konstam’s findings suggest that employers are using volunteer work as a proxy for applicants’ ability to actually do work. Even if the volunteering is unrelated to a job applicant’s chosen field, it’s a good indication that they can show up on time, interact with other people and provide some value to the organization.

“Volunteering activities provide opportunities for emerging adults to master specific skillsets and to demonstrate proof of competency and value,” Konstam writes.

Another way volunteering might help your job search is by giving you a broader perspective on what kind of work you’re good at and enjoy doing. “It is possible that by increasing social contacts, volunteering promotes an open-minded approach toward different careers,” Konstam writes. “Volunteering may increase career-related information and skills in a variety of job-related areas in a way that broadens… career interests.”

 

 

MONEY Second Career

How to Build a Second-Act Business with Your Millennial Kid

Combining complementary skills of two generations can be a recipe for success

It’s awesome working with my dad,” says Case Bloom, 30. The feeling is mutual, says his father, David, 58: “We are good complements to one another.”

Among the more striking developments I’ve learned researching my new book, Unretirement, is the rise in boomer parents going into business with their adult children, like the Blooms—co-owners of Tucker & Bloom, a Nashville, Tenn. luggage business.

In the past few years, setting up a multigenerational enterprise has been a mutually savvy way for boomers and their kids to deal with tough economic times. The parents typically have capital and plenty of experience, while their adult children burst with energy and tech skills.

From ‘You’ to ‘We’

The Blooms, and their business manufacturing highly-crafted messenger bags targeted at the DJ market, are a prime example. Before opening shop, David had spent his career in bag design and was director of travel products for Coach in New York City before he lost that job. When Case was in college in Nashville, studying business, he’d offer pointers to help his dad’s venture. “His logo was so bad. Horrible,” laughs Case. “I’d tell him, ‘You’re doing it wrong. Do it like this.’”

Eventually, Case says, it became “We should do it this way. The business happened organically.” Today, father and son each own half of the company, which has seven employees. David handles design and product development; Case is in charge of anything to do with the brand image and online sales. He’s also the one making frequent runs to Home Depot for the business’s factory and to the Post Office for shipments. “I have a different set of skills than my father,” says Case, who is also a part-time DJ.

When Kinship Is Friendship

One reason for the growing second-act-plus-child trend: surveys repeatedly show that today’s young adults generally get along well with their parents—and vice versa. “The key is an attitudinal shift in the relations between generations,” says Steve King, founder of Emergent Research, a consulting firm focused on the small business economy. “Boomers are close to their kids and the kids are close to their parents.”

Take Amanda Bates, a Gen X’er, and her mother Kit Seay, co-owners of Tiny Pies in Austin, Texas. “We’ve always had a close relationship, feeding off one another, finishing each other’s sentences,” says Kit, 73. They’d long wanted to do something together.

Several years ago, Amanda got the idea for making handheld pies from her son’s desire to take pie to school. So she and her mother began selling small pies, based on family recipes, in local farmers markets. They now sell them throughout the state, mostly through specialty stores, and opened a retail storefront at their wholesale facility in March 2014. Kit focuses on the creative and catering side of the business; Amanda’s in charge of the basics of running an enterprise. “The trust is there,” says Kit. Amanda agrees. “Yes, the trust is there. If she says something will get done, it will.”

Teaching Your Child Trust

Trust and complementary skills are also themes for Lee Lipton, 59, and his son Max, 25, and their Benny’s On the Beach restaurant in Lake Worth, Fla.

Lee, the restaurant’s principal owner, came out of the clothing manufacturing business, moving to Florida after the Calvin Klein outerwear line he ran with a few partners was sold. He bought Benny’s a year ago. Max, who’d wanted to get into the food business, is one partner; the other is chef Jeremy Hanlon. Lee’s the deal maker, Max manages the restaurant and executive chef Hanlon handles the kitchen. “The three of us trust each other incredibly and when one person feels strongly about something we tend to do it that way,” Lee says. “Very rarely after talking do we disagree, and that format was identical to my past partners. I want to teach Max and Jeremy that closeness.”

For second-act family businesses, creating boundaries between work and home is advisable, but easier to say than do. Speaking about her current relationship with her mom, Amanda Bates says: “We used to go out together and have fun, go to garage sales, that kind of thing. Now, when we get together, the business always come up. Even at family dinners, we end up talking business.”

The Win-Win of Multigenerational Businesses

But in the end, it’s family that makes these businesses succeed.

Bianca Alicea, 26, and her mom Alana, 46, started tchotchke-maker Chubby Chico Charms. in North Providence, R.I. with $500 and less than 100 charm designs at their dining room table in 2005. They now have roughly 25 full-time employees and sell several thousand handmade charms. Alana is the designer; Bianca deals more with payroll and other aspects of the business. “It’s important to remember you are family,” says Bianca. “Things don’t always go according to plan, but at the end of the day you have to see one another as family.”

Intergenerational entrepreneurship, it turns out, can be a win-win for boomers and their kids. For the parents, it’s the answer to the question: What will I do in my Unretirement? For their adult children, working with mom and dad provides them with greater meaning than just picking up a paycheck.

Chris Farrell is senior economics contributor for American Public Media’s Marketplace and author of the new book Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community, and The Good Life. He writes twice a month about the personal finance and entrepreneurial start-up implications of Unretirement, and the lessons people learn as they search for meaning and income. Send your queries to him at cfarrell@mpr.org or @cfarrellecon on Twitter.

More from Next Avenue:

Businesses Mixing Older and Younger Partners

Hiring Your Parent

Older Entrepreneurs Are Better Than Younger Ones

MONEY Millennials

How to Make Money Off Millennials in 2015

People doing "the wave" in a stadium
Doug Pensinger—Getty Images

In 2015, the oldest wave of millennials turns (gulp) 35—a milestone with significant implications for the job market, stocks, and the economy at large.

You hear a lot about the drag that the graying of the baby boomers could have on long-term economic growth. What’s often overlooked, though, is the fact that the U.S. will be golden on another demographic front: The biggest birth year in the bigger-than-boomer millennial generation turns 25 in 2015, while the oldest wave turns 35. These are significant milestones not only for those who get a slice of birthday cake but for the economy at large.

After all, 25 is when one’s career starts to get into full swing. While the unemployment rate for 20- to 24-year-olds is 11%, it’s 6% among 25- to 34-year-olds. For those with college degrees, the rate drops to 5%. Meanwhile, the mid-thirties are “when you hit higher-earning years, are more inclined to get married, and start putting money into the stock and real estate markets,” says Alejandra Grindal, senior international economist for Ned Davis Research. Plus, “productivity growth tends to peak when workers are 30 to 35,” says Rob Arnott, chairman of investment firm Research Affiliates.

Here’s how you can profit from millennial-driven growth.

Favor U.S. stocks. The stock market has tended to take off when the number of workers 35 to 49 has surged. Boomers aging into this bracket, for example, coincided with one of the longest bull markets, from 1982 to 1999.

As a metric, investment pros look at the M/Y ratio, which is “mature” workers (ages 35 to 49) divided by young ones (20 to 34). The U.S. M/Y ratio has been declining since 2000 but will begin rebounding in 2015 and is expected to climb through 2029. “Certainly this improves opportunities here relative to Europe and Japan,” where the ratio is in decline, says Arnott.

Research from Vanguard shows you get almost as much of the diversification benefit of keeping 40% of your stock portfolio overseas by having just 20% abroad. So in 2015, shift to the low end, especially since Europe and Japan may be headed for recession (again).

rescue

Profit off their nesting. Three-quarters of Gen Y-ers surveyed last year by the Demand Institute planned to move in the next five years, many out of their parents’ homes. Capitalize on this trend by buying home-related stocks. Gain exposure via SPDR S&P Homebuilders ETF, which counts Bed Bath & Beyond, Home Depot, and Williams-Sonoma among its top holdings besides homebuilders. The ETF’s stocks trade at about 10% less than consumer stocks in general, owing to the slower-than-hoped real estate rebound.

Shoot for the middle on college. With the bulk of millennials past their undergrad years, college enrollment has been falling since 2011. Many schools are discounting tuition to lure students. If your child is applying, “don’t get your heart set on universities in cities on the coasts,” says Lynn O’Shaughnessy, author of the College Solution blog. Schools in the middle of the country, less in demand, may offer better deals. Also consider smaller mid-tier colleges, adds Robert Massa, former head of admissions at Johns Hopkins.

Illinois Institute of Technology, DePauw University, and Rockhurst University are three Midwest schools on MONEY’s Best Colleges list that recently offered first-year students average grant aid of at least 50% of published tuition, according to government data.

Read next:
5 Ways to Prosper in 2015
Here’s Why 2015 Will Be a Good Year for Stocks
Here’s What to Expect from the Job Market in 2015

 

TIME Innovation

Five Best Ideas of the Day: December 15

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

1. To head off surging antimicrobial resistance — which could claim 10 million lives a year by 2050 — we need new drugs and better rules for using the ones we have.

By Fergus Walsh at BBC Health

2. Russia has squandered its soft power.

By Joseph S. Nye in the Journal of Turkish Weekly

3. A resurfaced idea from decades ago could finally unlock nuclear power’s potential to fight climate change.

By Josh Freed in the Brookings Essay

4. To take advantage of the power of diaspora communities to spur development at home, host nations must avoid a ‘one size fits all’ approach.

By by Jacob Townsend and Zdena Middernacht at The World Bank

5. The great recession is over but young and minority Americans are worse off than before.

By Matt Connoly in Mic

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME Careers & Workplace

Why You Should Go Ahead and Quit Your Dead-End Job

Job Hopping
Businesswoman resting head on desk Cultura RM/Jason Butcher—Getty Images/Collection Mix: Subjects RM

If you do it right, that is

Conventional job-seeking wisdom is that bouncing from one gig to the next is a sure way to get your resume thrown out as soon as it hits a hiring manager’s desk. But a new survey indicates that, as millennials increase their numbers and clout in corporate America, this attitude could become as out of place in the modern office as a typewriter.

According to a survey about on-the-job attitudes among different generations conducted by PayScale.com and research firm Millennial Branding, roughly a quarter of millennials say workers should be expected to stay in a job a year or less before moving on. While more than 40% of Baby Boomers think an employee should stick around for five years before shopping around their resume, only 13% of millennials share that view.

“It wasn’t surprising to see that millennials had a more relaxed attitude about job tenure than older generations,” says Lydia Frank, editorial director at PayScale.

Some of this intergenerational mismatch could be because of the labor market millennials confronted when they first reached adulthood. The survey finds that roughly a third of young adults with advanced degrees consider themselves underemployed — meaning they’re likelier to jump ship if they find a job opportunity that makes better use of their skills and education.

What’s especially revealing, Frank adds, is that 41% of Boomers still believe a five-year stretch is the minimum a worker should stay at a job. This means there are still quite a few hiring managers who frown on job-hopping, which means employees should be strategic with short-term tenures.

“I think they tend to view very vocal success . . . the Mark Zuckerbergs of the world — and think that’s essentially the playing field they’re on,” says Aravinda Souza, senior marketing manager at HR software firm Bullhorn.

Still, millennials might have the right idea in some industries — especially high-tech ones, Frank says. “Five years can be a really long time in certain industries like technology, for example, where staying at one company too long can be viewed as a sign of stagnation rather than loyalty,” she points out.

Young adults have less of an expectation that a company will be loyal to them, so they don’t feel an obligation to be loyal to their employer. In its survey, PayScale finds that millennials want bosses who are friendly and who give good feedback, but they’re less concerned that their boss “goes to bat for you” — a top priority for Boomers.

That said, millennials who engage in job-hopping for its own sake are taking a risk. Without a strategy behind it, this is still a red flag for hiring managers, Souza warns. “Basically, what it’s saying is you’re not loyal to the company, you’re not in it for the long haul and any resources the hiring manager would invest in you in terms of training . . . isn’t likely to be worth it,” she says.

“You have to strike a balance and ensure you’re switching companies for the right reasons,” Frank says. This means you have to be prepared to defend your job-hopping.

“Significantly higher pay, opportunities for advancement and a better match with a company’s mission or culture can all be easily explained in an interview,” she says. If you can articulate those kinds of reasons, you’ll come across as focused rather than flaky.

MONEY mortgages

Here Come Cheap Mortgages for Millennials. Should We Worry?

young couple admiring their new home
Justin Horrocks—Getty Images

The federal agencies that guarantee most mortgages are launching new loan programs that require only 3% down payments for first-time buyers. Is this the start of financial crisis redux?  

According to new research from Trulia, in metro areas teeming with millennials, such as Austin, Honolulu, New York, and San Diego, more than two-thirds of the homes for sale are out of reach for the typical millennial household.

That goes a long way to explaining why first-time homebuyers have recently accounted for about one-third of homes sales, according to the National Association of Realtors, down from a historic norm of about 40%. And it should concern you even if you’re not a millennial or related to one: A shortage of first-time buyers makes it harder for households that want to trade up to find potential buyers; and spending by homeowners for homes and housing-related services accounts for about 15% of GDP.

Now the federal government appears intent on reversing the trend — or at least on easing the pain of the still-sluggish housing industry.

Trulia’s dire analysis assumes that buyers need to make a 20% down payment — a high hurdle for anyone, let along a younger adult. But Fannie Mae and Freddie Mac, the government agencies that guarantee the vast majority of mortgages, this week launched new loan options that will require down payments of as little as 3% for first-time buyers (and, in limited instances, refinancers as well). Fannie’s program will be live next week; Freddie’s, which will be available to repeat buyers as well, will launch in early spring.

Before you get all “Isn’t that the sort of lax standard that fueled the financial crisis!?”, it’s important to realize significant differences between now and then.

The only deals that will qualify for the 3%-down programs are plain-vanilla 30-year fixed-rate loans. No adjustable-rate deals, no teaser-rate come-ons, and, lordy, no interest-only payment options. And flippers are not welcome; the home must be the borrower’s principal residence.

Both Fannie Mae’s MyCommunityMortgage and Freddie Mac’s Home Possible Mortgage program are aimed at moderate-income households. For example, to qualify for Fannie Mae’s program, household income must typically be below the area median. Income limits are relaxed a bit in some high cost areas, such as the State of California (up to 140% of the local median) and pricey counties in New York (165% of the median).

That said, lenders will be allowed to extend these loans to borrowers with credit scores as low as 620. That’s even lower than the average 661 FICO credit score for Federal Housing Administration-insured loan applications that were turned down in October, according to mortgage data firm Ellie Mae. (The average FICO credit score for FHA approved loans was 683.)

Like FHA-insured loans, the new 3% mortgages offered by Fannie and Freddie will require home buyers have private mortgage insurance (PMI). That can add significantly to mortgage costs.

For example, a $300,000 home purchased with a 3.5% fixed rate loan and a 3% down payment would have monthly principal and interest charges of about $1,300 a month. The PMI adds another $240 or so to the monthly cost; that’s nearly 20% of the base monthly mortgage amount. (You can estimate the bite of PMI using Zillow’s Mortgage Calculator.)

But one significant advantage the new Fannie/Freddie loan programs have over the FHA program is that they will allow homeowners to cancel their PMI once their home equity reaches at least 20%. Beginning in 2013, the annual insurance charge on FHA-insured loans, currently 1.35% of the loan balance, can never be cancelled regardless of whether the borrower has more than 20% equity.

 

MONEY Health Care

Why Millennials Hate Their Least Expensive Health Care Option

Health plans that shift more up-front costs onto you are rapidly becoming the norm. But millennials don't seem happy about taking on the risk, even in exchange for a lower price.

Millennials want their parents’ old health insurance plan. A new survey from Bankrate found that almost half of 18-to-29-year-olds prefer a health plan with a lower deductible and higher premiums—meaning millennials would rather pay more out of their paycheck every month and pay less when they go to the doctor. Compared to other age groups, millennials are the most likely to prefer plans with higher premiums.

That surprised Bankrate insurance analyst Doug Whiteman. “One would assume people in this age group were not likely to get sick, so they’d choose the cheapest possible plan just to get some insurance,” he says.

In theory, millennials are perfect candidates for high-deductible plans. The conventional wisdom is that since young and healthy people tend to have very low health-care costs, they should opt for a higher deductible and keep more of their paychecks.

If, for example, you go to the doctor only for free preventive care, switching from the average employer-sponsored traditional PPO plan to the average high-deductible health plan would save a single person $229 a year in premiums, according to the Kaiser Family Foundation’s 2014 data.

Millennials shopping in the new health insurance marketplace last year didn’t want the cheapest plans either. According to the Department of Health and Human Services, more than two-thirds of 18-to-34-year-olds chose silver plans, which have mid-level premiums and deductibles. Only 4% picked catastrophic plans, the ones with the lowest premiums and out-of-pocket limits of around $6,000.

Why Millennials Are Risk Averse

Why are millennials choosing to pay more for health care? Turns out the “young invincibles” don’t feel so invincible after all, says Christina Postolowski, health policy manager at a youth advocacy group called—as it happens—Young Invincibles. “Millennials are risk-averse and concerned about their out-of-pocket costs if something happens to them,” Postolowski says.

High-deductible plans saddle young adults with risk they can ill afford. According to Kaiser, the average employer-sponsored high-deductible plan made singles pay $2,215 out-of-pocket in 2014 before they ever saw a co-pay.

Yet according to Bankrate, 27% of 18-to-29-year-olds have no emergency savings. A $2,200 bill could sink them. Indeed, Bankrate found that the two groups most likely to prefer a low-deductible plan are millennials and those with incomes between $30,000 and $49,999.

“Young people don’t have money in a bank account to pay for high deductibles,” Postolowski says. “Our generation is carrying $1.2 trillion in student loan debt. An unexpected medical incident isn’t just physical pain. It can be economic pain too.”

That’s why Bankrate’s Whiteman thinks millennials are being “really smart.”

“One of the concerns I have is too many people might only look at the price and neglect the fact that some of these plans that seem really cheap can come with deductibles as high at $6,000,” he says. “That’s a significant amount of money out of your own pocket.”

Fighting the Tide

Some young workers, however, have little choice, or won’t soon. Employers are increasingly shifting to health plans that make workers shoulder more of the costs. Towers Watson found that 74% of employers plan to offer high-deductible plans in 2015, and 23% of them will make it the only option.

Plus, across all employer plans, you have to pay more out-of-pocket than in years past. According to Kaiser, the average deductible for single coverage in 2014 was $1,217, up 47% from five years ago. The generous, low-deductible health plan your parents once had probably won’t be available to you.

How to Make the Best of It

If you end up in a high-deductible plan, learn to make the most of the tax-free savings plan that goes with it—a health savings account (HSA). Yeah, a monthly HSA contribution is one more recurring expense on top of your student loan payments, car payments, rent, and (hopefully) 401(k) contributions. But at least this one can give you the peace of mind that you’ll have the funds to cover a health emergency.

Here’s how an HSA works: You make contributions with pre-tax income. The money carries over year-to-year. You can invest the funds in your HSA, the way you invest the money in your 401(k), and the account will grow tax-free. If you need the money for medical expenses, you withdraw it, again, tax-free. Or, if you stay healthy and have money leftover at age 65, you’re free to spend it on anything.

You qualify for an HSA if your deductible for single coverage is $1,300 or more, or $2,600 for family coverage (and if you’re not claimed as a dependent on someone else’s tax return). And your company might help you out. Some employers make contributions to their employees’ HSAs, of $1,006 a year on average, according to Kaiser.

For ultimate peace of mind, save enough to cover your entire deductible. But if you’re feeling pinched, at least put away the money you saved on premiums by switching from a more expensive plan.

More:

Read next: 4 Ways Millennials Have It Worse Than Their Parents

TIME Demographics

4 Ways Millennials Have It Worse Than Their Parents

millenial money
Adrian Samson—Getty Images

The latest Census numbers show Americans aged 18 to 34 struggling worse than their parents did in the '80s

Millennials make less money, are more likely to live in poverty and have lower rates of employment than their parents did at their ages 20 and 30 years ago.

That’s the bleak assessment from the U.S. Census Bureau’s latest American Community Survey numbers Thursday, which paint a financially disheartening portrait of Americans aged 18 to 34 who are still trying to rebound from the Great Recession.

The survey largely shows that millennials are worse off than the same age group in 1980, 1990 and 2000 when looking at almost every major economic indicator:

1. Median income
Millennials earned roughly $33,883 a year on average between 2009 and 2013 compared with $35,845 in 1980 and $37,355 in 2000 (all in 2013 inflation-adjusted dollars).

(MORE: American Women are Waiting to Have Kids)

2. Leaving home
More than 30% of millennials live with at least one parent compared to about 23% in 1980, largely because they can’t get a job.

3. Employment
Only about 65% of millennials are currently working compared with more than 70% in 1990

4. Poverty
Almost 20% live in poverty compared with about 14% in 1980.

But it’s not all bad news. The new Census numbers show that young Americans are much more diverse and educated than previous generations. About 22% have a bachelor’s degree or higher (up from 16% in 1980), and a quarter have grown up speaking a language other than English at home (up from 10% in 1980).

And possibly the most interesting statistic in the new numbers? A little over 2% of those aged 18 to 34 are veterans, compared with almost 10% in 1980.

Read next: Millennials Are Mooches…and Other Money Myths

MONEY Financial Planning

Millennials Are Mooches…and Other Money Myths

mom taking back credit card from daughter
Kevin Dodge—Getty Images

Here are three financial stereotypes that just don't ring true to one experienced planner.

There are plenty of stereotypes about how certain people behave around money — stereotypes I’ve often seen contradicted in my experience as a financial planner. Let me debunk some of these money myths for you.

Myth One: All millennials are mooches.

The 30-year-old client came in for the first time. She asked a question that, if you were to listen to the financial media, no one has ever asks. “Can I pay off the student loans my parents took out for me without any tax consequences?”

Say what? Young people sending money to their parents?

I’ve never heard that mentioned in my almost 20 years in the industry. According to the myth, millennials are unemployed and live rent-free in the basement, while expecting their parents to pay for pricey destination weddings.

My sensitivity to what I hear in the media on this issue started when, to prepare people’s taxes, I started asking clients if they had lent anyone money who hadn’t paid them back.

That’s when I started hearing it. “Hasn’t paid me back? Will never pay me back? Yeah, that’s my Dad.” It’s not common response, but I heard it several times a year.

In fact, I’ve heard about just as many parents trying to mooch off their kids as the opposite. My conclusion: If you have more money than other people in your family, there is a small chance you’ll deal with a mooch — um, I mean, a relative with boundary or entitlement issues.

Myth Two: Women care more about spending money than investing. Men care more about investing than spending.

Perhaps this was true once upon a time. In my practice, however, I regularly see women who are more interested in money, saving, and investing than their husband. Conversely, I see men who love to spend — sometimes more than they know is wise — and enjoy the finest in life.

Recent research shows that while men might score better on a pop quiz about interest rates and bond prices, men and women show no difference in investing and spending behavior.

Myth Three: Financial advisers work only with rich patriarchs.

When I first started in financial planning, I sat next to an established planner at dinner. He described his ideal client: “Men over sixty who have made a lot of money who just want to make sure their families are taken care of.”

“Oh, “ I said, “you work with patriarchs!”

We laughed at my joke. However, in my male-dominated industry, I dare say this is the ideal client of a lot of advisers. I call the pursuit of these clients “Searching for Victor Newman,” after the ultra-rich paterfamilias who drives his family nuts on The Young and the Restless.

Working in the industry has assured me that patriarchy is on the wane. I’ve only had one client who said that “taking care of his family” was what he aspired to, and I’ve talked to hundreds of people about their goals and values.

My experience is that both men and women want to make sure that their kids and partners are taken care of both financially and emotionally. They work on the project together.

This bias gives consumers the impression that advisers only want to help Victor Newmans. Here are three organizations that help both advisers who aren’t hunting for that client and consumers who want to meet them:

And my answer to the client in the fortunate position of paying back her parents? After consulting with an attorney on her specific situation, I told her to go ahead.

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Bridget Sullivan Mermel helps clients throughout the country with her comprehensive fee-only financial planning firm based in Chicago. She’s the author of the upcoming book More Money, More Meaning. Both a certified public accountant and a certified financial planner, she specializes in helping clients lower their tax burden with tax-smart investing.

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