Young women are more likely than their male counterparts to worry about their finances – 64 percent of millennial women stress about money, compared to 47 percent of men their age. They may have good reason for concern since their average reported salaries are $10,000 less than male millennials, according to survey results by Laurel Road, an online lender.
The women reported an average salary of $29,403, while men had an average reported salary of $39,839.
Other Findings From the Survey
In college, millennial men tended to gravitate more toward traditionally lucrative majors, while women tended to make a choice based on what they wanted to do, the study found. And more men, at 88 percent, took at least one finance course in college, while only 54 percent of women did.
While pursuing financial aid options, 35 percent of women that age didn’t fully understand the choices they had for financing college while they were completing the application process. In contrast, only 11 percent of men that age didn’t understand their options.
“Recent graduates, especially women, are lacking adequate support in the form of financial education, which is negatively affecting their long-term financial outlooks and opportunities,” said Alyssa Schaefer, Chief Marketing Officer of Laurel Road.
Schaefer said women currently are on the hook for approximately two-thirds of the $1.45 trillion owed in student loan debt in the U.S.
How Can Women Gain a Better Financial Advantage?
To help manage college costs better, it’s important to seek out information about financing options, including how long it may take to pay back student loans.
It often takes borrowers longer to pay off their student loans than they’d ever imagine. Of those who have student loans in the U.S., 55 percent say they were paying them longer than they believed they would. When separating out the millennials, 66 percent said it was taking longer to repay their loans than they thought it would, the survey found.
A qualified student borrower with great credit and high income who wants to improve their financial position can try to refinance their loans. If you fit the aforementioned criteria, then you are more likely to qualify for a refinance loan that comes with a beneficial interest rate. A beneficial rate just means that you can get a low rate on the refinance loan; today, the best interest rates fall in the 3 percent range.
Out of adults who have earned their college degrees, only 34 percent with student loans have refinanced. Millennial men are far more likely than millennial women to refinance – 62 percent of men that age did, compared to 39 percent of women that age.
Another great motivator for young women who are worried about finances is to find a mentor who will teach them the ropes of personal finance. Even if they have already graduated and can’t do anything about the level of student loans they already have, the lessons they learn can help them make better financial decisions that can improve their long-term financial outlook.
Author: Mike Brown
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