It's official: graduates of class this year with a record debt amount. The Wall Street Journal reported that debt of studies total underwritten by parents and students adds to an average of $22,900, 8% more than last year. This is scary stuff, especially considering how much it is difficult for new graduates to find jobs now.
But a closer examination suggests that it is not this terrible news, after all. As the Wall Street Journal, education debt can help people move forward, because "it provides people with economic benefits that the recession and slow recovery have only increased." The College Board calculates that the college graduates currently face at a rate of 4.6 unemployment, compared to 9.7% in a high school diploma holders people only. They are also much more: holders of degree Bachelor on 25 years earn a median salary of $55,700. High school graduates earn $33,800.
In fact, the biggest problem might be avoiding debt of studies in total. Richard Settersten and Barbara Ray support in their recent book not quite adult that some young people take their fear of debt for the moment that they hurt financially. "Many young people, especially those of lesser means, see the price [of the college tuition] tag and think," Oh my God, I can't possibly take that. "". "They could be forced to themselves," said Ray. (See 7 biggest money mistakes College graduates Make).
To get behind some of the statistics, here is an overview of some of the biggest myths about the current generation of twenties and their bank accounts:
Myth: 20 don't know lots of money.
Reality: It is recent graduates know many - in some cases, more than the generation of their parents. A survey by the Scottrade online brokerage firm has concluded that the recession really inspired 20 for information on the functioning of the economy and to learn more about their own personal financial situation. In addition, a higher percentage of respondents said they do more research before investing to older age groups.
[Images: 12 money mistakes nearly everyone makes]
Myth: Gen there feels on their luck.
Reality: It is true, they are not easy times in many ways. Recessions in the wars, it is not easy to find a good job and unemployment is particularly high among young adults. BU according to the Pew Research Center, only three to ten young people say they earn enough money to lead "the kind of life they want," all nine in ten say they believe that they will be able to do so in the future. Only 76 per cent of the generation x and 46 percent of Baby Boomers say the same thing.
Myth: Recent graduates are spend by holics.
Truth: Catch since the recession of the surveys show that report 20 mutual less following the latest trends and styles, preferring a State of mind more recent, frugal. A survey conducted by TNS retail forward found that buyers in the 20s and 30s were more likely to buy the cheaper versions of products.
Myth: Pay cheques are much lower today.
Truth: In many respects, the 20 is the richest generation have existed. Yes, they face a high unemployment rate, but the full time jobs that exist often come with benefits Records - in large part related to health insurance. Studies by the Federal Reserve Bank of Minneapolis show that, after that adjust you for inflation and the benefits, median pay rates have increased 28 per cent since 1975. Which helps explain why a Pew study - taken after the recession - showed that 60% of the respondents aged less than 40 say that their standard of living is better than that of their parents at the same age. Only 15% said that it is worse.
The bottom line: The class of 2011 has no need to leave the their debt to define their - may be just a springboard for the jobs of better quality and more large income off in the real world.
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