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'Most people have no idea': Money truths for the younger generation

Posted at 7:14 AM, Mar 08, 2019
and last updated 2019-03-08 08:31:38-05

MILWAUKEE -- Have you ever wished your younger self knew how to budget, save and spend like you know now? In a recent study, the average debt for someone between 18 and 24 is $28,090.

Approximately eight percent of Generation X is in debt. Over 80 percent of Baby Boomers and Millennials are in debt, mostly due to credit cards, mortgages, auto and medical bills.

In another study by Money Magazine, debt reaches its highest point when you reach the peak of your career.

Melanie Eden with Eden Financial Services in Wauwatosa said most Americans don’t have six months of emergency money set aside.

“Know what your budget is. Most people have no idea what their monthly expenses are,” said Eden.

“Very, very, few people save money. The average American, if we look at America as a whole, has about one thousand dollars in their savings or checking account,” said Eden.

Eden said you have to make an itemized list of monthly expense but savings needs to be a priority. She said each month people should put aside 10 percent of their gross income.

Financial experts said if you do acquire debt, then pay off the highest interest rate or the smallest balances first.