When I first saw the headline of this article—“There’s a theory that stingy millennials are to blame for the sluggish economy“—my first thought was, “Well good for them!”
The article relates that the savings rate of the Millennial generation is higher than that of their predecessors from Gen X. I’ve long thought that the reason Millennials are hesitant to get locked into a mortgage or burdened by a car loan (instead opting for Uber and other alternatives) is that they have seen firsthand the misery that their parents are in with their own debt. These young people have seen the futility of living with lots of “stuff” but at the same time being slaves to debt.
Or maybe it’s even simpler than that: Millennials have too much college loan debt to spend any money to boost the economy.
I would really like to know what most Millennials are thinking when it comes to their spending habits. I can only speak to my own kids’ experiences. I’ve tried, with some success, to drill into their heads the need to avoid the materialistic mindset that was so painfully prevalent with my generation.