ENGLEWOOD, Colo., Aug 10, 2010 (BUSINESS WIRE) --

A financial storm may be brewing for many of the more than 87 million Americans age 18-34, popularly known as "Gen Y," according to survey results just released by Western Union, a leading global payment services company.

Gen Y'ers are generally described as creative, independent and tech savvy, while at the same time they are sometimes seen as overly confident and impatient. Many are also in trouble financially, according to the latest Western Union^(R) Money Mindset Index.

According to the newly released findings from the Index's national survey of 3,000 consumers, Gen Y is experiencing financial stress and difficulty in obtaining credit.

GEN Y'S WANING ECONOMIC CONFIDENCE

The survey detailed the following findings from Gen Y respondents:

• Nearly 30 percent of Gen Y'ers report having difficulty in managing their spending, more than 20 percent wait longer to pay their bills, and 35 percent have borrowed money from friends or family members
• Half of Gen Y respondents reported feeling increased stress about financial obligations in the last six months.
• More than one in three members of Gen Y say that their financial situation has worsened in the last six months.
• About 27 percent of Gen Y survey participants have been turned down for a loan or line of credit.
• Sixty percent of Gen Y'ers have not seen their credit score in the past year, and 44 percent have never seen their credit score.

"The silver lining is that, in spite of the difficult economy, Gen Y is engaging in money-savvy behaviors that can help build a better financial future," says David Shapiro, senior vice president, Western Union. "The Money Mindset Index identified Gen Y's use of tools such as online bill pay to manage their budget and credit standing. Factor in their high comfort level with web-based programs and budgeting tools, and Gen Y has a solid foundation for getting their finances back on track."

Gen Y's difficulties are in contrast to other survey respondents, many of whom are seeing positive changes in their financial situation including less impact from economic challenges such as changes in credit card limits and increased interest rates, a declining need for spending cutbacks, and decreased shopping at "discount" retailers. While gains in economic confidence are certainly not dramatic, the trend toward cautious optimism continues to grow. Regardless of generation, a few simple strategies can help consumers stay on track financially.

MONEY MANAGEMENT TIPS FROM WESTERN UNION

• Establish (and stick to) a Budget: It sounds simple, but it is surprising how many consumers do not have basic budgeting skills. Online sites like Mint.com offer easy, intuitive tools to create a budget and will even send helpful reminders so you always have a clear view of your financial picture.
• Know Your Credit Score: There are few things in life that can affect your financial health more than your credit score. Every consumer is entitled to a free credit report each year from http://www.annualcreditreport.com. Get it. Read it. And act quickly to correct any errors.
• Pay Those Bills On Time: Approximately 30 percent of your credit score is based on your bill payment history. Scheduling automatic payments through your bank and using expedited payment services when necessary can keep you on track and help you avoid costly late fees.
• Build an Emergency Fund: Experts recommend saving enough to cover six to eight months of your expenses, but even $20 a month, deposited into a savings account, can help ensure that you are able to meet urgent or unexpected financial needs.

Survey Methodology

In May 2010, Javelin Research surveyed more than 3,000 consumers online about their current behaviors and emotional mindset regarding debt and personal finance issues. The Western Union Money Mindset Index has a margin of error of 1.8 percentage points.

About Western Union

The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Custom House branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, as well as send payments and purchase money orders. The Western Union, Vigo and Orlandi Valuta branded services are offered through a combined network of approximately 430,000 agent locations in 200 countries and territories. In 2009, The Western Union Company completed 196 million consumer-to-consumer transactions worldwide, moving $71 billion of principal between consumers, and 415 million business payments. For more information, visit http://www.westernunion.com.

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SOURCE: The Western Union Company

The Western Union Company
Sherry Johnson, 720-332-4750
Sherry.l.johnson@westernunion.com