Millennials typically earn less, borrow less than Gen X
In the auto industryês continuing effort to understand millennials, the latest thinking is that they didnêt buy cars right out of college because they werenêt making enough money, not because they werenêt interested in car ownership. Supporting that idea, a recent study from FactorTrust finds that millennials earn slightly less and borrow less than their elders, Generation X (no set dates, but ages about 40 to 50).
One reason millennials borrow less may be their high student debt load — $29,400 on average for college graduates in 2012. The average monthly income of millennials who took out a loan in 2014 was $2,351. And 63 percent of millennials do not own a credit card.
There is a great deal of opportunity surrounding alternative lending options for millennials, as studies show they are less loyal to financial institutions than previous generations, says Greg Rable, FactorTrust CEO.Download Bulletin PDF