Ah, Florida. The land where the sun shines and palm trees sway has always held a special place in the heart of college students, who often come to the Sunshine State for spring break. It’s a seemingly picture-perfect paradise, at least on the surface.
A new survey found, however, that things aren’t too secure for college-educated in Florida. Almost half of them are living paycheck to paycheck, leaving them struggling to make ends meet as each pay period comes along.
The LendingTree survey questioned over 1,400 adults from the ages of 25 to 34 who had either been to college and received a bachelor’s degree or taken some college courses.
The main question was a simple one: “Do you live paycheck to paycheck?”
Responses varied based on income, but the South had a much higher percentage of adults living from paycheck to paycheck, with 38 percent saying they lived that way.
LendingTree attributed this average to the fact that only two Southern states (Alabama and Florida) had their own minimum-wage laws, which means people in those states have to rely on the federal minimum wage.
But an even greater percentage of Floridians were living paycheck to paycheck -- nearly 10 percent higher than the average for the entire South. The survey polled 139 Floridians with a margin of of error of 8 percent.
Nearly half of Floridians from the ages of 25 to 34 said they’re living paycheck to paycheck. Now, according to Sperling’s Best Places, Florida doesn’t have an average cost of living higher than the national average, but Floridians do make less money than the national median income.
According to recent census data, the median income for a family of four was almost $47,000 -- nearly $6,000 short of the national median income of $53,000.
Nearly a third of Floridians have a bachelor’s degree, which is slightly lower than the national average. Over 16 percent of Floridians live in poverty, 1 percentage point higher than the national average.
The LendingTree survey wasn’t the only bad bit of news for college-educated adults hoping to make it in Florida. A study from WalletHub put Florida at the back of the pack on its national list of the best places for those with student debt.
Florida fell short in a number of areas, ranking 40th out of all 50 states and the District of Columbia for the best states for student debt.
The study factored in several methods to get the rankings: the average student debt to the unemployment rate for people aged 25 to 34 as well as the percentage of students with past-due loan balances.
The study ranked Florida 43rd in home ownership for adults aged 25 to 34. Student debt can have a big impact on making “life purchases” later on -- adults saddled with large amounts of debt tend to be a little more hesitant on taking the leap to buy houses or start up their own businesses due to overwhelming debt.
Scott Allen, chief financial officer in the Office of Student Finance at Post University, said the rise in student debt levels has had wide-reaching effects on families and their financial security.
“People are increasingly careful about how they approach core financial decisions,” he explained. “As more millennials incur student loan debt, the less they will buy homes, save for retirement and embark on entrepreneurial opportunities such as starting a small [business] that could provide jobs and services that fuel and drive the economy.”
To put it simply, the palm trees and nice weather can only last so long until adults realize they may seriously struggle to make ends meet in Florida. At least the weather’s great.
Reach Tampa-based reporter Allison Nielsen by email at allison@sunshinestatenews.com or follow her on Twitter: @AllisonNielsen
