More Millennials Being Diagnosed with Depression; 62% of Millennials are Living Paycheck to Paycheck; and Why a Billionaire Investor Believes Millennials Should Invest in Bitcoin.
A new study by Blue Cross/Blue Shield suggests that there has been a 47 percent increase since 2013 in major depression diagnoses among millennials, who are defined as being between the ages of the mid-20s through their 30s.
Dr. Christie Sylvester, a psychologist and millennial herself, believes that financial depression is a very real thing.
“Most of my patients are what would fall within the millennial age range. People these days go on to college and accumulate a lot of college debt. They come out and try to get a job. That’s commensurate to afford a house and develop a family.”
Andrew Latham, the managing editor of SuperMoney.com agrees, saying that “the triggers of depression are complicated. There can be a genetic component. There can be life changes. It could be stress and stress caused by financial difficulties is certainly an important trigger.”
Social media also plays a role, according to Sylvester. “Social media contributes to setting these very high standards that people want to have this perfect American dream life and have all these things that their parents did.”
Unfortunately, that reality may not be possible for all.
A survey conducted by Charles Schwab shows that only 38% of millennials feel financially stable, and almost two-thirds say that they’re living paycheck to paycheck.
Schwab’s 2019 Modern Wealth report also revealed that millennials feel very insecure when it comes to their finances.
Farnoosh Torabi, a personal finance author and host of the “So Money” podcast, had this to say about the matter:
“It may seem odd that when we look at statistics that say so many millennials are living paycheck to paycheck, but on the other hand, they’re overspending.”
On average, millennials say they spend an average of $478 a month on items that are considered “nonessential”, such as dining out, vacations, entertainment and luxury items.
Torabi explained, “When your financial llife is in disarray, chances are, you will overspend. Emotions around money lead us to make irrational choices.”
Billionaire investor Tim Draper had advice for millennials during an interview with FOX Business. His solution to helping millennials make sure they have enough money for retirement? To invest in bitcoin.
“You look at bitcoin and you say ‘Hey, this is great because it’s not my father’s Oldsobile,” Draper said to FOX. “Our banking system is the Oldsmobile, is the old Oldsmobile.”
It’s that banking system that Draper believes is putting millennials into hundreds of thousands of dollars of debt.
“Things aren’t quite working for [millennials,]” said Draper. “With the current salaries, they can’t quite pay it off. It’s a really difficult time, and they’ve become renters rather than buyers because they have to.”
Draper suggested that millennials should “Start building your empire in the new model that doesn’t require that you have to pay 2.5 to 4 percent every time you swipe your credit card to some bank or another and doesn’t require all the heavy, heavy regulations we have that are all tied to the dollar.”
“I think if you really want it to work, I think you go to bitcoin or crypto currency.”
He continued, “If you’re a millennial, you’ve got he world out there in front of you. What’s the future going to look like? It’s not going to be tribal anymore. It’s going to be global. It’s not going to be tied to geographic borders—it’s going to be open.”
Despite Draper’s words of advice, it should be noted that bitcoin has been extremely volatile since it’s inception, with an average volatility reading of 63 percent for the past six months.