Millennials, Milestones And Managing The Broad Financial Picture

The late-20-something, early 30-year-old faces a distinct environment quite unfamiliar to previous generations. While in decades past the average age to get married was quite young, that trend has changed. And with the bump in median marriage age, other key milestones seem to likewise be delayed for this age demographic.

According to the U.S. Decennial Census (1890-2000), the average age for a first marriage in 1950 was between 20 and 21 for women, and 24 for men.

Source: Census.gov

Today, the average age for a first marriage is 27 for women, and 29 for men, according to the most recent U.S. Census data.

Source: Pew Social Trends

"Barely half of all adults in the United States – a record low – are currently married, and the median age at first marriage has never been higher for brides (26.5 years) and grooms (28.7)," reported Pew Research Center analysts.

And, while there is much debate over the catalysts for this significant jump in median age – from higher education levels to macroeconomic trends such as jobs numbers – the Pew Research team was quick to point out that the "trendiness" of marriage has decreased steadily irrespective of the economic environment.

"The United States is by no means the only nation where marriage has been losing ‘market share' for the past half century. The same trend has taken hold in most other post-industrial societies, and these long-term declines appear to be largely unrelated to the business cycle. The declines have persisted through good economic times and bad."

Similarly to the delayed marriage trend, the first-time homebuyer portrait has changed over the last fifty years as well, according to National Mortgage Professional Magazine.

Source: 2015 National Association Of Realtors® Home Buyer and Seller Generational Trends

The ‘Unromantic' Millennial

Chalk it up to a conglomerate of different microcosms that individually push pause on creating the "ideal" image of life held decades ago. While generalizations have been touted as the causes behind Millennials acting so different from generations past, the causes are only part of the picture.

Because of the complex nature of correlation and causation, it does little good to try and point out each and every why behind a trend; it is much more effective to acknowledge the trend and look ahead.

Therefore, regardless of when life's milestones are played out, it is prudent to recognize how these steps affect the broader financial picture for the individual. More importantly than the age at which an individual gets married or buys a first home, financial security is key. While a single microeconomic event may not be enough to justify a significant delay in milestones for an entire generation, the combination of embarrassingly high student debt, depressing employment opportunities and bleak government assistance in retirement – among other factors – have surely contributed to this trend.

In order to surmount the traditional milestones in young adulthood, an individual needs to have the following in place:

• Have a secure, well-paying job
• Have life insurance and health insurance
• Have a robust savings account
• Have an adjustable budget
• Have a healthy credit report and know how to combat credit downfalls
• Have a plan for the future, in various iterations

The solid foundation created by these is more important than the age at which the milestone is met. It is prudent to recognize this and treat these individuals accordingly. For a generation often labeled "lazy," "ignorant," "entitled" and "narcissistic," the generation appears to have one thing going for them: They are financially literate and making decisions accordingly.