Millennials are often blamed for any number of things, including taking down entire industries. From credit cards to divorce, news articles have placed an enormous amount of blame on this generation of young adults. But could they also soon be responsible for eliminating things like Chapter 7 bankruptcy? While some people in California might be hopeful, it is unlikely that it will happen.
In general, the financial priorities of millennials are about the same as their parents. A NerdWallet survey asked a group of adults spanning the millennial and baby boomer generations how they would use an extra $1,000 in a single month, and found their answers strikingly similar. The vast majority of both generations responded that they would either save or invest the money. They did differ on at least one matter, though. Despite the association of millennials with loving to travel, 7% of baby boomers said they would use the money to travel, but only 3% of the millennial respondents said they would travel.
Despite frequent criticism regarding debt levels and spending habits, one personal finance expert said that millennials' financial habits are largely on track. With the current trajectory, these young adults should find themselves in the same financial position as current baby boomers in just a few decades. However, young adults still face unique financial challenges, including enormous student loan burdens that can make it difficult to establish a secure financial foundation.
Although California millennials seem to be doing better than most news articles like to say they are, this does not mean they are immune to encountering financial troubles. From the burden of student loans to unexpected medical bills or even a sudden loss in income, getting into overwhelming debt is easier than most people think. Chapter 7 bankruptcy can be a smart path toward financial recovery for adults of all generations who can no longer manage their bills.