moneyreallymatters.com

Picture speaks better than thousand words. That’s the reason I been wanting and searching for the digital copy of this image in money magazine website for couple of days. You would think they would publish the digital version but not really or atleast I couldn’t able to find after searching for 2 days now. Anyway, here is the scanned version for you all to look and take a holistic viewpoint.

One of the largest group of audience affected by the recession were Young Adults particularly college grads. Many grads are extending their college days just to avoid jumping into the unemployment pool now. They are hoping things will get better eventually and days will come when we will be able to find jobs quickly. But that sunny days are still long way to go.

Many grads leave their college with the heavy debt burden and lives with their parents until they find a decent job. Their trouble cycle starts right after they exit their college. They need to start making student loan payments. So they need to find a job to support them and pay loan as well. They couldn’t find decent job in this economy, so settle for low income which leaves small amount after loan payment. This is the situation for the last few years.

Many analyst predict it has a greater impact with cascade effect on to our society. As the grads settle for lower income, it takes many more years for them to reach the income respective to their skill set. Until that point many cannot even think about marriage. So it increase late marriage numbers which will eventually screws the new birth numbers in our society. That’s already started to happen and graphics above clearly depicts the impact so far. If this trend continues, it will impact the proportion of older and young adult numbers in our country sometime soon which will larger effect on our economy. This is the case with china which is fighting against large older population. As you can see, no one worries about that macro economics part right now because we have bigger and more important fishes to fry especially how to get over this crisis and make our living.

Understandably it’s tough to see the long term impact while we are struggling currently with lots of issues. But now and then we have to stop and take time to look and make changes if we can for the benefit of our kids/future generation. That’s my take.