Money Under 35 – A Financial Health Study [REPORT]

The first release of Money Under 35, a Navient national study conducted by Ipsos that is designed to measure financial well-being of young adults between 22-35 years old is now available. Young adults, age 22 to 35, with all levels of educational attainment were asked to provide a snapshot of their current income, amount of savings, and the amount and types of debt/loans they are repaying. To get a complete view of young adult’s financial well-being, the survey included more subjective items, such as their satisfaction with their life, job, income, and prospects for the future and questions about their attitudes and beliefs in regards to their finances, in addition to the concrete items – income, savings, and debt/loans.

Key findings from Money Under 35 include:

•     Financial health improves with age and education. Sixty-three percent of young adults score in the “good” financial health range, while 20 percent are in “excellent” and 17 percent are in “poor” financial health. Age 30 is a turning point in moving from “good” to “excellent,” and the higher the educational degree, the more likely an individual is to be in “excellent” financial health.
•     Ninety-four percent of young adults are saving. The top priority is an emergency fund followed by saving for a home and for children’s education.
•     Among individuals who complete a degree, young adults who borrowed for college are more likely to have a mortgage (35% for borrowers compared to 24% for non-borrowers among bachelor’s degree holders, and 45% for borrowers compared to 37% for non-borrowers for advanced degree holders).
•     Among bachelor’s and advanced degree holders, borrowing for college does not deter family formation. Bachelor’s degree holders who borrowed for college are equally likely to have children (39%) as those who did not borrow (40%) and to be married (52% for both groups). Advanced degree holders who borrowed for college are more likely to be married (70%) and have children (51%) than are advanced degree holders who did not borrow (62% and 42%, respectively).
•     Those who borrowed for college—even if they have paid off their loans—are more likely to be worried about debt. Seven in 10 who paid off their student loans indicate they are worried about debt compared to half who never borrowed.
•     Young people who did not complete their college degree and who borrowed indicate more financial concerns than those who didn’t study beyond high school. Sixty-three percent of who borrowed but didn’t complete a degree and who have not yet paid off their student loans say they are worried about paying bills each month, higher than those who did not attend college at all (54%).
•     Young adults make conscious spending decisions. Eight in 10 young adults report checking their finances before making a purchase.
•     Young adults’ self-assessment of financial well-being is above average. The average self-assessment of financial health is above average, 6.2 on a scale of 1-10, trending higher with age and education level.

To download report, CLICK HERE

To download infographic,  CLICK HERE