Improving Personal Financial Health and Wellness
Wealth is often measured by home ownership and investment for retirement and savings. A 2013 study by Urban Institute showed that young professionals in their 20s and 30s have accumulated 7 percent less wealth than their 1983 predecessors, and those aged 29 to 37 had their wealth fall by 21 percent. Furthermore, the same study shows that this age group accumulates far less non-retirement assets and business equity, 22 percent and 15 percent, respectively. Two big factors are the increasing of home/apartment prices and the explosion of student debt.
The burden of debt and increasing cost of living in desired neighborhoods in Columbus keeps young professionals renting instead of buying property and ties up money from otherwise being invested in emergency savings or financing their retirement. The Create Columbus Commission believes that by fast tracking debt repayment among residents in Columbus, the region’s competitiveness for talent will be improved.
The city of Columbus can better attract and retain millennial talent if there is greater opportunity for young people to set themselves up for long-term financial success by:
- Freeing up income to invest for the long-term by relieving the burden of student loan debt by fast-tracking repayment
- Increasing the affordable living options by expanding desirability of central city Neighborhoods
- Increasing the potential for per capita income growth by
- Improving the pathway to entrepreneurship
- Supporting the health of small businesses
- Improving financial literacy
- Professional Development
- Continuing education
- Moving forward with a project/initiative to help young professionals
Young Adults, Student Debt and Economic Well-Being – Pew Research Center, 2014
Lost Generations? Wealth Building Among Young Americans (PDF) – Urban Institute, 2013
Student Loan Debt: Major Barrier to Entrepreneurship – Gallup, 2015