After graduating from the University of Wisconsin-Whitewater, Ryan began his career with Advicent as a business development representative in the mid-market space. Ryan strives to help advisors overcome challenges and improve efficiencies to ultimately drive revenue. Ryan is passionate about developing his career in the financial industry.
Share and enjoy
Being a recent college graduate, I deal firsthand with the major student loan debt crisis and the large amount of concern it brings to Millennials across the country. We are just entering the workforce and are making more money than we ever have before in our lifetime.
However, many Millennials still do not fully understand what their financial future looks like. This is concerning as many financial decisions we make early on will drastically effect our future financial well-being. So how can we better understand? How bad really is our debt? Why would an advisor want to help me – I cannot afford to pay them?
Where the student loan crisis is today
The average class of 2016 graduate has $37,172 in student loan debt – this is a six percent increase from 2015. How are graduates supposed to start thinking about purchasing a home and saving for retirement with this major burden hanging over them, considering many of them do not even fully understand what this debt means?
According to a survey of over 500 Millennials that are in college debt, 59 percent said they had “no idea” when they would be in a position to pay off their loans entirely and only about half said they are willing to limit shopping, eating out, and social spending.
Click here to download our free infographic about the student loan crisis.
Student debt is clearly a major crisis to Millennials across the country, but is the real issue the actual debt or is it the lack of education and understanding? As I mentioned before, the average student debt is rising and it does not seem to be slowing down. So, the best way to deal with this crisis is to provide a better understanding of what the debt means one’s financial future.
Assisting Millennials now can lead to life-long clients
This is where it is vital for financial advisors to step in. College graduates need help understanding their options, as 75 percent said they did not plan to try to refinance as a way to manage debt. How can you expect a recent grad to lower their lifestyle expenses when they do not fully understand why they need to do so?
Millennials need advisors to step in at one of the most important stages of their life because these decisions will drastically effect the rest of their financial life. Giving Millennials appropriate advice early on when they need it most is the perfect time for advisors to start building a trusting, life-long relationship.
Advisors have the opportunity to shape these young adults’ futures – they need help not only understanding college debt, but also understanding their long-term goals (i.e., retirement or purchasing that first home). Millennials need and advisor to assist in putting a plan in place so they can start taking control of their financial well-being.
Many advisors are also seeking a way to attract Millennials, and this is it. Sure, recent grads may not bring in the most revenue right now. However, as an advisor, you have the opportunity to create financially healthy habits in young adults that will help you create life-long relationships which will ultimately increase retention and grow your assets under management over time.