Younger People and Debt (MNP 3 Minute Debt Break)


Lifestyle Debt

This is another edition of the MNP 3 Minute Debt Break!

The youth of today face a wide range of financial challenges that were mostly unheard of just a generation ago. The cost of rent, real estate, post secondary tuition and consumer products are all largely outpacing inflation. The thought of purchasing a home, paying off student loans or saving enough to retire comfortably seems increasingly out of reach.

So, why are younger people facing such high debt loads and shaky financial futures so early in life? The pressure to conform has always been an issue with younger people. When their friends or social media influencers all have the latest smartphones, video games, clothing and cars, it only increases the pressure to fit in. But acquiring these types of things is rarely easy and often results in one spending all their income or eventually getting a credit card and racking up a whole bunch of debt. You can help by speaking with them about the benefits of saving, investing, living within their means, financial goal setting and prioritizing needs over wants. This will help them with peer pressure and be more cautious and thoughtful about taking on debt.

Another challenge facing the youth today is Instant Gratification. While most get better at delaying gratification as they get older, today’s cultural and technological shifts are getting in the way of that. Computer games reward immediately, online shopping delivers goods in just days and the rapid availability of credit means people don’t have to save up or even wait for payday to buy the latest gadgets or must-have clothing item. The way to help is to be extremely vigilant getting them to understand the value of earning a desired result. It’s okay to say no sometimes. Even better is sitting down and helping them become resourceful or creative about finding ways to earn what they want. 

Young people today face immense financial challenges that no other generation has before. And many are struggling with unmanageable debt in silence. If this sounds like someone you care about, encourage them to reach out to a Licensed Insolvency Trustee for a Free Confidential Consultation today. A Licensed Insolvency Trustee will review their entire financial situation and identify opportunities to permanently overcome their debt.

These options could include Bankruptcy or a Consumer Proposal. It could also include referrals to external services to help learn budgeting and life management skills and counselors to address compulsive spending, peer pressure or other social challenges.

Young people have their whole lives ahead of them and there are better ways to spend those years than stressing about debt. Help someone you care about get the financial fresh start they need and deserve today.

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