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Millennials and Money

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Millennials and Money

Millennials and Money

Arguably the most significant transition the world faces is a demographic sea change. The Baby Boomers are retiring and the Millennials (born 1981-2000) are taking the baton and running.

This group is the largest North American generation in history, and we’ve talked about their investing and money habits before. Today’s infographic is based on looking at over 100 surveys of Millennials in 2014, and it reveals a great deal about their habits in personal finance.

Probably the most staggering figure, in our opinion, is that Millennials have a different attitude towards debt than previous generations. This is likely a result of growing up through the Financial Crisis, and also seeing their parents and countries take on unprecedented amounts of debt. It turns out that 63% of Millennials do not have a credit card, and do not want one. This is almost twice the amount (35%) of adults over 30 years old. There is other mistrust in the old financial guard, as 71% of Millennials would rather “go to the dentist, than listen to what banks are saying”.

Not surprisingly, some other results: Millennials are willing to spend more to go green than other generations (56% vs. 34%), Millennials want a job that makes a big social impact in contrast to employed people over 35 years old (35% vs. 19%), and Millennials believe social media and word of mouth much more than television, magazine, or online advertisements.

What Millennials want will slowly turn the investing world upside down in many categories. Any service marketed towards this group will likely be profoundly impacted, so it is an area worth watching for investors.

Original graphic from: Consolidated Credit

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Personal Finance

Chart: The Declining Value of the U.S. Federal Minimum Wage

This graphic compares the nominal vs. inflation-adjusted value of the U.S. minimum wage, from 1940 to 2023.

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The Declining Value of the U.S. Federal Minimum Wage

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

This graphic illustrates the history of the U.S. federal minimum wage using data compiled by Statista, in both nominal and real (inflation-adjusted) terms. The federal minimum wage was raised to $7.25 per hour in July 2009, where it has remained ever since.

Nominal vs. Real Value

The data we used to create this graphic can be found in the table below.

YearNominal value
($/hour)
Real value
($/hour)
19400.36.5
19450.46.82
19500.759.64
19550.758.52
1960110.28
19651.2512.08
19701.612.61
19752.112.04
19803.111.61
19853.359.51
19903.88.94
19954.258.49
20005.159.12
20055.158.03
20107.2510.09
20157.259.3
20187.258.78
20197.258.61
20207.258.58
20217.258.24
20227.257.61
20237.257.25

What our graphic shows is how inflation has eroded the real value of the U.S. minimum wage over time, despite nominal increases.

For instance, consider the year 1960, when the federal minimum wage was $1 per hour. After accounting for inflation, this would be worth around $10.28 today!

The two lines converge at 2023 because the nominal and real value are identical in present day terms.

Many States Have Their Own Minimum Wage

According to the National Conference of State Legislatures (NCSL), 30 states and Washington, D.C. have implemented a minimum wage that is higher than $7.25.

The following states have adopted the federal minimum: Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin, and Wyoming.

Meanwhile, the states of Alabama, Louisiana, Mississippi, South Carolina, and Tennessee have no wage minimums, but have to follow the federal minimum.

How Does the U.S. Minimum Wage Rank Globally?

If you found this topic interesting, check out Mapped: Minimum Wage Around the World to see which countries have the highest minimum wage in monthly terms, as of January 2023.

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