Handle With Care: College Debt Dings Young Adult Wealth

first job

Don’t let student debt get you down. Start saving as soon as you’re on the job.

$64,700

Average net worth of U.S. households headed by a young, college-educated adult without any student debt obligations.

$8,700

Average net worth of U.S. households headed by a young, college-educated adult with student debt obligations.

The Takeway: This confirms what we already know. Investment in higher education can be the best investment you ever make, if you do it carefully and thoughtfully. Once you’re out in the workplace, you will have student loans to pay back, but don’t let that make you delay starting to save in your 401(k) or other workplace plan. Save less, if you need to, but get going. With compounding, you can soon catch up, and your degree should result in higher earnings down the road.

 

Source: Pew Research Center

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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