Young adults worry about financial future

06.05.09
By Lewis Green

In-depth interviews with 400 young adults between the ages of 18-25 revealed some interesting trends about the country's future leaders, employees and parents.

The study, commissioned by the Donald W. Reynolds National Center for Business Journalism and conducted by Behavior Research Center, provides a window into the outlook of the nation's young adults and how their spending and saving plans have changed.

According to the survey responses, 59 percent of young adults say the current economy has affected their choices about career and how to manage money and make lifestyle choices in the future.

Listening, watching and reading news about the current state of the economy has pushed nearly half of all respondents to make immediate changes in their spending outlook. Roughly one-third of those respondents who have made changes are cutting back on purchases and 13 percent cut down on credit card use.

As parents look forward to the fall and consider how to pay for college-age kids' tuition, young adults are realizing that school may be something they can't afford.

Nearly 20 percent of the young adults surveyed say they put off going to college based on news about the economy. Although there are some financial assistance tools available to people enrolled in college, just 4 percent opted to take out a student loan.

Meanwhile the already beleaguered auto industry should brace for more bad news - young adults worried about their own economic futures are foregoing new car purchases as a way to funnel more money into savings.

In addition to watching news and seeking financial advice from family, young adults are connecting with peers about the economy and money matters. The study revealed that 20 percent of respondents are chatting about financial issues on social networking sites like Facebook and MySpace.

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Some young adults are making tough financial decisions