A generation with and younger representatives of millennials are struggling with everyday challenges. In the face of rising costs of life, professional uncertainty and changing economy, younger generations must find a way to adapt. In the foreground comes the problem of the so -called negative property.
A generation with a younger part of the millennial generation faces the problem of negative property (a situation in which the value of a person or household debts or household exceeds the value of their assets) in connection with the growing debt, which limits their life chances, results from the new Fairness Foundation analysis.
Think Tank indicates that negative assets in which debts exceed assets are associated with lower earnings and worse health in later life. The Foundation calls for ministers to restore the Trust Fund for Children in Great Britain, which would enable young people to participate more in society.
In Great Britain, many people live without a financial pillow
“The Guardian” cites the words of Will Snell, the general director of Fairness Foundation, who stated: “At the moment too many people in the UK live without a financial pillow of security or are burdened with debts. This deprives them of their resistance in the face of economic shocks and excludes from documented benefits, which gives even modest possession of assets, when it comes to future earnings and employment, health physical and mental and civic commitment. “
The Foundation's report, “No Money, More Problems” (“Lack of money, more problems”, analyzed data from Office for National Statistics, which showed that One-third of people aged 25-34 in Great Britain has negative propertyreaching 47% in Wales, compared to 18% in London. The average net debt was 8,313 pounds in 2022, compared to 5 008 pounds in 2010 – which means an increase of 25% in real terms after considering inflation.
This growth probably results from growing rents, student loans and the crisis of living costs, which is emphasized by the gap between the landlords and the owners of houses whose properties usually have a higher value than their mortgage debt.
Load related to loans make it difficult to build savings
However, this difference is not only theoretical: women with assets – usually savings – at the age of 23 earn 11% higher salaries when they are 33 years old and men by 5%. Women who have assets worth over 1,000 pounds at the age of 23, much more often report “excellent” health in later life. Every person with financial assets is also more likely to vote or get involved in volunteering.
Although the repayment of student loans is exempt for young people earning less than 27,295 pounds who started their studies after 2012 (in Great Britain, student loans are based on income and the repayment begins only when a person begins to earn above the set threshold), the burden related to the repayment of the loan hinders to build savings.
Snell added: “Even a student loan is a barrier to people who build financial assets. It is disturbing, but also non -nasty that the level of debt increases. Politicians must deal with the debt and a broader problem that millions of people do not have any financial assets, treating it as a priority, because this problem harms our economy, our social tissue and even faith in our democracy. “
“We once had initiatives such as the Trust Fund for Children; we can and should again consider bold asset building policies, such as civic heritage, which would give each one -off amount after reaching the age of majority, financed from higher wealth taxes to ensure everyone in the economy.”
A generation Z asking charity organizations for help
One -third of people who last year turned to help the charity organization Stepchange (dealing with debt) was between 25 and 34 years old, as noted by her Chief Customer Director, Richard Lane, is a “huge disproportion” because people in this age range constitute only 17% of the UK population.
Lane added: “younger adults usually rent apartments, sometimes with lower or more uncertain income, and often experience more temporary life events, such as having children who increase costs. All these factors may contribute to more tense income or rely on loans to make ends end with the end.”
Stephange is increasingly helping people who have gas, electricity, water, property tax and other home accounts. Yougov study at the request of the organization in January showed that 35% of people aged 25-34 have shown signs of financial difficulties over the past three months, and 15% of them used a loan, loans or debit to survive to pay, compared to 10% of adult British.
Lane emphasized: “The growing costs associated with running a household make it difficult for people to save and build financial immunity to protect them from future financial shocks – creating a harmful debt cycle for an increasing number of young people.”
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