In San Francisco, millennials are paying, on average, an absolutely unsustainable 79% of their salary for rent. In Los Angeles, it is 61%. In Boston, 56%. In Seattle, 51% (The Street). It's starting to become more clear exactly why millennials don't have any money to save.
A Solution for millennials: This one is old fashioned. Live with roommates! Either split a 1BR with a significant other or shack up with several roommates in a house. It's the only way to still live in a desirable area of the city (a big want for millennials), while not breaking the bank (at least too badly).
3. Millennials have almost no investments
As we mentioned in the #1 Financial Fail, savings are almost non-existent for my generation. If savings rates are bad for this generation than investing rates are [insert word for bad * infinity].
Nearly 4 in 5 millennials are not investing in the stock market (BusinessWire). While lack of money is a top barrier to investment (41%), there also appears to be a trust boundary, as a large portion of the millennial generation matured during the 2008–2009 financial crisis. Over 1/3 of millennials would actually trust an app with their money more than a traditional investment firm.
Why is this so scary?
Because as we mentioned before, the impact of not saving and not investing in the 25–35 age range can be devastating for retirement. Additionally, long-term investing is one of the only ways that you can grow your net worth consistently above the rate of inflation.
Two Solutions for millennials: Acorns and Robinhood.
Alex Mitchell is the Senior Product Manager, Head of Websites and Identity Products, at Vistaprint.
This piece originally appeared on Medium.