This month marks the nine-year anniversary of The Great Recession. Although many millennials deliberately postpone marriage and having children, nine years ago few were married and had not yet become parents. Back then, the majority were starting their careers.
For those who did marry and have children during the recession, it is still impacting their families.
Childcare is often the second-largest monthly expense for families. As an alternative, most millennial parents either share a nanny or get financial support from their parents or grandparents.
When three or more families eventually divide nanny sharing costs, private daycare becomes more affordable for millennial parents.
Grandparents also help relieve millennial parents of this stressful expense. The majority of baby boomer and generation X grandparents have provided financial support to their adult children in the past year.
The New College Fund
Millennial parents are saving more for their children’s college educations than older-generation parents. Also unlike previous generations, millennials are less trusting of the stock market as a means of long-term investing.
Millennial parents have started saving earlier, driven by their expectation of paying a higher share of out-of-pocket college costs than older generations. This is possible because millennial parents still having their student debts fresh in their minds. They are also risk-averse and are reluctant to see their children go through the same “trials and tribulations.”
Because of The Great Recession, employment is harder to find for millennial professionals than older age brackets. Forced to compromise, millennial parents accept lower-level positions.
Millennials working for smaller startup corporations have their own challenges with benefits. They are not legally required to offer sick leave and may not allow employees to buy life insurance through their benefits plan. Some may not offer health insurance at all.
As the largest generation in the American workforce continues to feel the burn from The Great Recession, how can millennials do their part to drive economic growth?