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Millennials: their financial and lifestyle secrets [INFOGRAPHIC]

Est. 4 min read

Tired of not having a financial safety net? We’ve combed through government data and dozens of surveys to figure out what the average 25-year-old looks like (statistically speaking). What we found isn’t surprising – 25-year-olds don’t have enough of a safety net. If you’re in your 20s, here’s our advice on how you can get above the average.

→ Jump to 25-year-old male archetype
→ Jump to 25-year-old female archetype

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Start paying off that debt.

Your average 25-year-old has over $40,000 in debt. Most of that is student loan debt, though there’s some auto loan, credit card, and home mortgage debt thrown in there, too. Best way to get rid of it? Aggressively pay it down. Read more on how to get rid of debt.

Build up your emergency savings.

Most 25-year-olds don’t have enough in savings to cover three months of normal spending. If they lose their jobs, there’s a good chance they’ll be struggling financially until they can find a new hustle. Best way to build an emergency fund? Put money aside! Read more on how to actually save your money.

Get a renters insurance policy for the price of a Netflix subscription

If you’re renting, you need renters insurance. It’s really that simple. The majority of 25-year-olds aren’t homeowners, and the rest are either with their parents or renting an apartment. Renters insurance is your safety net for that apartment. Find out more about renters insurance.

Get some long-term disability insurance before you get old

25-year-olds probably aren’t thinking about their risk of disability, but they should be – there’s a one in four chance that they’ll experience a disability sometime before they retire. The good thing is, at age 25, long-term disability policies are the cheapest they’ll ever be! Somewhere in your early 30s, the price skyrockets, so get a policy while you’re young and affordable. Learn more about long-term disability insurance.

If you look at the infographic below, you’ll see that once we put together our archetype, we ran him or her through our personal insurance checkup to see what kind of recommendations our robot number-crunchers would spit out. Sure enough, along with health and auto insurance, the checkup says renters and long-term disability. Now you know why!

Take a closer look at these infographics to discover why 25-year-olds need a stronger financial safety net.

What the average 25-year-old man looks like

average twenty five year old male

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What the average 25-year-old female looks like

average 25 year old female

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Sources

  1. Most popular baby names of 1990: Babycenter.com. Represents Americans born in 1990, separated by gender.
  2. Employment: Bureau of Labor Statistics, 2014. Represents Americans ages 25 – 29, separated by gender.
  3. Annual income: Department of Labor, 2014. Represents Americans ages 25 – 34, separated by gender.
  4. Emergency savings: Federal Reserve Survey, 2013. Represents Americans ages 18 – 29, not separated by gender.
  5. Marriage and divorce: United States Census Bureau, 2013. Represents Americans ages 25 – 29, separated by gender.
  6. Health insurance: United States Census Bureau, 2014. Represents Americans ages 25 – 34, separated by gender.
  7. Related children: United States Census Bureau, 2014. Represents Americans ages 25 – 34, separated by gender.
  8. Life expectancy at birth: Center for Disease Control. Represents Americans born in 1990, separated by gender.
  9. Home ownership: United States Census Bureau, 2014. Represents Americans under the age of 35, excluding children and college students, not separated by gender.
  10. Debt: United States Census Bureau, 2013. Represents Americans under the age of 35, not separated by gender.
  11. Political party: Pew Research Center, 2015. Represents Americans ages 18 – 33, not separated by gender.
  12. Smartphones: Pew Research Center, 2015. Represents Americans ages 18 – 33, not separated by gender.
Published on August 14, 2015

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Adam Cecil writes for PolicyGenius, a digital insurance brokerage trying to make sense of insurance for consumers. You can read more of his writing on his site.
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