It is not surprising to find that the majority of our young adults are in debt. From school loans, credit card bills, to mortgages for a new car and home. Most young families in America are finding it more difficult than ever to live a debt-free life.

Young adults mostly blame the rising cost of living, school fees and easy access to credit cards. But have you ever taken a closer look or even examined your spending habit?

Well, the sad truth is that according to the latest US government report, the personal savings rate has plunged to a negative 0.7 percent in December from a negative 0.2 percent in November.

The question is: are we becoming financially richer and thereby reducing the need to save?

Or are we getting poorer and living paycheck to paycheck each month with no extra money to save?

Since the national disposable income didn’t change much, it means that people still earn a considerable amount of money, but still go into debt and save less!

If you ask me, the spending habit and carefree mindset play the biggest role in young adults getting into debt. Young adults today have no idea what budgeting is all about. They spend on credit for a fancy car or watch, dine in fine restaurants, and live in big houses, all on credit.

With little knowledge about ‘needs’ and ‘wants’ spending, young adults tend to squander money on ‘wants’ spending that leaves them deep in debt without realizing it.

Yes. I think you have to question how easy it is to get credit. But still, the carefree mindset and attitude of young adults’ spending habits are more problematic and misleading. I feel this is an issue that needs to be worked on if the nation is to help young adults avoid falling into debt, an issue almost invisible 20 years ago.