The world has not been kind to young people trying to obtain independence. With a massively problematic global economy, job instability and too few opportunities, the average millennial will not have as many opportunities as they might expect. Despite the world obviously improving thanks to more freedom for more people – regardless of race or gender – it still does not mean acceptance into those areas benefitting young people financially.
Further, they find themselves looking after both the older and younger generation. This means, for example, caring for their parents and younger siblings or children. Since millennials will be the next generation of business owners, it is important to consider how they can escape this trap.
How young people’s finance trouble affects business
The reason so many millennials find themselves trapped is due to what occurred in the past. For example, obtaining a degree should be the beginning of becoming financially independent. Instead, many young people find themselves in debt thanks to student loans. Thus, they need to spend much of their working lives paying back money that allowed them to graduate in the first place.
This creates a barrier to financial freedom. They cannot afford to save or invest too much, since most of their income will be devoted to paying back a loan. What should matter to the business world is how this prevents growth.
“[In 2013], the CFPB reported that many believe the burden of the student debt is costing the US startup jobs.
“One advocacy group, Young Invincibles, has reported that debt has made it all but impossible for almost a quarter of graduates to hang out their own shingle, with 8% claiming the Small Business Administration has turned down their loan requests.”
In order to make money, you need to have money. Yet for young people still in debt, this becomes impossible. Young people are unable to grow their finances, focus on investments and take steps toward improving their lives. This leads to business sectors suffering, since no new blood enters, fresh ideas never arrive and no one can afford to apply to vacancies.
How do we escape?
Businesses can do a lot to help young people. More effort should be made to reach out to qualified young people. It’s not enough to merely advertise or create vacancies. Young people are not the ones in positions of power.
Businesses can appeal to millennials by stressing they understand their overall situation. They can offer a reasonable salary, in addition to loan repayments and tuition assistance. Importantly, businesses must offer health care incentives and, perhaps, travel opportunities. Due to studies, most young people have not been able to travel the world. This is not only due to how expensive travel is, but also how much time is required. Time is not a commodity young people have while studying.
By responding to these sorts of needs, businesses can help lift young people out of their financial traps, bringing in a new generation into the business world. Everyone benefits.