Millennials have overtaken Baby Boomers as the largest generation currently in the workforce, and the oldest members of the generation are staring down 40. They also make up a significant component of the energy consumer market.
Also, they’re more vulnerable to economic shock than any prior generation since those in the Greatest Generation who were born during the Great Depression. Many are struggling under crushing student debt and putting off purchasing homes and having families. The average debt for an under-30 skyrocketed by 160 percent between 2014 and 2017, while the average household income only moved the needle by a sluggish-in-comparison 7 percent.
This means Millennials are particularly vulnerable to an economic shock. Economic shock, or a large and unexpected expense, impacts roughly 60 percent of American households each year. The obstacle could be medical bills, a car or home repair or a job loss, and it is more common than most would expect, but 55 percent of households struggle to return to normalcy afterwards.
Almost as surprising is the number of homeowners who aren’t prepared for an economic shock. A little more than a third of American homeowners have an emergency fund of less than $500 or nothing set aside at all. It’s obvious that low-income households would be more vulnerable to financial shock, but fully half of those with incomes of $50,000 or less have no emergency savings.
HomeServe Helps Guard Against Economic Shock
Dorothy’s gas service line was only 15 years old and should have had many years of service left. However, an unexpected leak caused a disruption in her service and revealed the line was no longer up to code. This unexpected expense could have been devastating, if she didn’t have a HomeServe emergency repair plan.
You can help energy consumers prepare or prevent economic shock, beginning with education. To learn more about economic shock and ways to combat it, download our eBook, Economic Shock: Solutions for Vulnerable Customers.