What Donald Trump's win means for millennial money: How taxes, jobs and debt will change

Before you go, we thought you'd like these...
Before you go close icon

President-elect Donald Trump will be the 45th president of the United States in an unexpected win over Democratic nominee Hillary Clinton, who conceded the election Wednesday morning.

Among voters 18 to 29, Clinton earned the majority — 55% — of votes, compared to Trump's 37%. But Clinton's share was still less than the 60% that Obama carried in 2012.

Even if you didn't vote for Trump, he'll be the new president starting in January. What will his presidency mean for you — and your money? For one, if the Affordable Care Act is repealed, you could pay hundreds of dollars more for health insurance. And there's far more Trump could do, including influencing job growth, tax policy, and even interest rates.

Let's drill down.

How will Donald Trump affect my student debt?

There are 40 million Americans collectively carrying $1.3 trillion in outstanding student debt. Young people have said in surveys it was the second most important campaign issue — right after the economy, including worries about jobs, wages and paid leave.

Trump's "policies" page on his campaign website doesn't have a dedicated section addressing student debt, as Clinton's website did.

But Trump has addressed the topic of debt in sympathetic — if vague — terms: "We're going to work with all of our students who are drowning in debt to take the pressure off these people just starting out in their adult lives," hesaid in his GOP convention speech.

And in a campaign speech in Columbus, Ohio, in October, Trump promised student loan payments would not exceed 12.5% of borrowers' income and he would only require borrowers to make payments for 15 years.

"We'll let them get on with their lives," he told the crowd.

See how major newspapers around the globe reacted to Trump's victory:

17 PHOTOS
Newspapers around the world react to Trump's win
See Gallery
Newspapers around the world react to Trump's win
A businessman walks past copies of the London Evening Standard newspaper, featuring a picture of U.S. President-elect Donald Trump on its front page, waiting to be picked up in the square mile financial district of the City of London, U.K., on Wednesday, Nov. 9, 2016. Donald Trump was elected the 45th president of the United States in a stunning repudiation of the political establishment that jolted financial markets and likely will reorder the nation's priorities and fundamentally alter America's relationship with the world. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
A Mexican holds a newspaper with headlines referring to the eventual triumph of Donald Trump on November 9, 2016 in Mexico City. / AFP / PEDRO PARDO (Photo credit should read PEDRO PARDO/AFP/Getty Images)
Mexican newspapers with their front page referring to the eventual triumph of US presidential candidate Donald Trump on November 9, 2016 in Mexico City. / AFP / YURI CORTEZ (Photo credit should read YURI CORTEZ/AFP/Getty Images)
A Mexican holds a newspaper with headlines about on the eventual triumph of Donald Trump on November 9, 2016 in Mexico City. / AFP / PEDRO PARDO (Photo credit should read PEDRO PARDO/AFP/Getty Images)
Copies of a special edition of the Financial Times newspaper, featuring a picture of U.S. President-elect Donald Trump on its front page, sit waiting to be picked up in the square mile financial district of the City of London, U.K., on Wednesday, Nov. 9, 2016. Donald Trump was elected the 45th president of the United States in a stunning repudiation of the political establishment that jolted financial markets and likely will reorder the nation's priorities and fundamentally alter America's relationship with the world. Photographer: Chris Ratcliffe/Bloomberg via Getty Images
A Mexican newspaper with its front page referring to the eventual triumph of US presidential candidate Donald Trump on November 9, 2016 in Mexico City. / AFP / YURI CORTEZ (Photo credit should read YURI CORTEZ/AFP/Getty Images)
A Mexican newspaper with its front page referring to the eventual triumph of US presidential candidate Donald Trump on November 9, 2016 in Mexico City. / AFP / YURI CORTEZ (Photo credit should read YURI CORTEZ/AFP/Getty Images)
A Mexican reads a newspaper with headlines about on the eventual triumph of Donald Trump on November 9, 2016 in Mexico City. / AFP / PEDRO PARDO (Photo credit should read PEDRO PARDO/AFP/Getty Images)
View of Guatemalan newspapers informing about the victory of US presidential candidate Donald Trump in their front pages, in Guatemala City on November 9, 2016. / AFP / JOHAN ORDONEZ (Photo credit should read JOHAN ORDONEZ/AFP/Getty Images)
Colombian newspapers report the victory of US presidential candidate Donald Trump on their front pages, in Medellin, Colombia, on November 9, 2016 / AFP / STR / RAUL ARBOLEDA (Photo credit should read RAUL ARBOLEDA/AFP/Getty Images)
An 'I Voted' sticker adorns a newspaper at an election watch party organized by the American Chamber of Commerce in Hong Kong, China, on Wednesday, Nov. 9, 2016. Republican Donald Trump was projected to win North Carolina and Florida, an unexpectedly strong showing in results Tuesday night that potentially throws the balance in the presidential race to Michigan and Wisconsin, key parts of Hillary Clinton's Midwestern electoral firewall. Photographer: Anthony Kwan/Bloomberg via Getty Images
TOKYO, JAPAN - NOVEMBER 09: A man distributes an extra edition of a newspaper featuring a front page report on the U.S. Presidential Election and Republican President-elect Donald Trump on November 9, 2016 in Tokyo, Japan. Donald Trump defeated Democratic presidential nominee Hillary Clinton to become the 45th president of the United States. (Photo by Yuya Shino/Getty Images)
Chilean newspapers report the victory of US presidential candidate Donald Trump on their front pages, in Santiago, on November 9, 2016 / AFP / MARTiN BERNETTi (Photo credit should read MARTIN BERNETTI/AFP/Getty Images)
An Iraqi man holds an edition of Iraqi daily newspaper Azzaman displaying pictures of US presidential candidates Donald Trump and Hillary Clinton in Baghdad on November 9, 2016. Billionaire populist Donald Trump, tapping into an electorate fed up with Washington insiders, was on the verge of a shock victory over Hillary Clinton in a historic US presidential election that sent world markets into meltdown. / AFP / SABAH ARAR (Photo credit should read SABAH ARAR/AFP/Getty Images)
The New York Post newspaper featuring president-elect Donald Trump's victory is displayed on a New York newsstand, Wednesday, Nov. 9, 2016 in New York. Donald Trump claimed his place Wednesday as America's 45th president, an astonishing victory for the celebrity businessman and political novice who capitalized on voters' economic anxieties, took advantage of racial tensions and overcame a string of sexual assault allegations on his way to the White House. (AP Photo/Mark Lennihan)
A Clarin newspaper, left, with a headline reading in Spanish "Trump was winning and U.S begins an era that shocks the world" with a picture of President-elect Donald Trump is prepared to be delivered outside a building in Buenos Aires, Argentina, Wednesday, Nov. 9, 2016. (AP Photo/Natacha Pisarenko)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

This is different from the current program available to borrowers with federal student loans: Currently people can cap their payments at 10% of their income and need to pay off their loans for at least 20 years.

One big concern? A Trump policy adviser has suggested that colleges might be pushed to share risks in a way that disincentives them to admit or lend to low-income liberal arts majors.

The idea would be to push students to take out loans only if they'll end up in high-paying fields that will enable them to pay back debt. An end effect could be that only wealthier students get to be arts majors, for example.

Finally, early signals suggest the markets believe for-profit colleges and student lenders could benefit under a Trump presidency, thanks to a lightening of rules, regulations — and consumer protections.

Will Donald Trump lower or raise my taxes?

In countless campaign speeches, Donald Trump has promised to cut taxes for the middle class. Indeed, his plan calls for wide tax cuts, including collapsing the income tax brackets and cutting the taxes on investments that were put in place by the current White House.

But Trump's plan disproportionately benefits high earners.

And, maybe even more importantly, many economists are skeptical about how feasible Trump's plan, as a whole, would be in practice.

In fact, a new report from the Penn Wharton Budget Model research organization finds that Trump's large proposed tax cuts would likely increase federal debt, which could hinder economic growth and job creation.

Another study found that nearly 8 million low- and middle-income families would actually see their tax bill go up under a Trump presidency.

That said, almost everyone else would see their tax bills go down. Citizens for Tax Justice says that middle-income earners would net a little more than $800 in savings on average under Trump's plan.

For example,if you make $30,600 a year, you'll pay 1.4% of your income in taxes, making it a tax cut of about $433. That's like a 4% share of the overall U.S. tax cuts.

Still, rich people would do best. The top 1% of earners will receive a bigger share of the tax cut: 44% of it. Someone making $1,723,100 will have their tax bill reduced by $88,410.

What will Donald Trump do to jobs?

Trump has said he would create 25 million jobs over the next decade. That's about 18 million positions more than would be created if he did nothing, at least according to Congressional Budget Office projections that show 7.1 million jobs will be created by 2026 under the current trajectory.

But after Moody's Analytics looked at Trump's jobs projections, it reported his programs would actually result in 3.4 million job losses.

Trump's proposals may help grow the economy in the short term, but researchers found, after about a decade the benefits would wear off.

After that the economy would begin to shrink, University of Pennsylvania economist Kent Smetters told Fortune. By 2040, he said, Trump's plans could cost the economy about 11 million jobs.

The United States has lost factory and manufacturing jobs in recent decades: more than 7 million since 1979, according to Marketwatch.

But analysis suggests any president would have a hard time bringing back those 5 million jobs, because they are gone for good. The U.S. still produces a lot of goods, and more than it did 20 years ago, but it takes fewer workers to make those products thanks to technological advances.

That said, there are jobs in several industries — including private prisons, which have seen stock prices rise in the wake of Trump's win — that are expected to thrive under his presidency.

Will interest rates go up under Trump?

Protecting and improving your credit score is up to you alone. But the decisions of the newly-elected president will also affect your life as a borrower, influencing everything from the interest rates you pay on credit cards and mortgages, to credit reporting rules and how hard it is to pay off debt.

The U.S. central bank, or Fed — short for Federal Reserve — is an independent entity overseen by Congress. It's headed by the Board of Governors, which is chaired by Janet Yellen. The Fed's job is to keep as many people employed as possible, without letting the prices of the goods and services get too high.

Trump – like all U.S. presidents – won't have a direct hand in the Fed's decisions. The president gets to pick the chairperson and board and sets the goals, and then steps back: It has been established that the decisions of monetary policy should be free from political influence.

Trump has said he champions low-interest-rates. This is unusual for a Republican, which as conservatives, usually support policies that result in higher interest on investments.

"I'm not a person that thinks Janet Yellen is doing a bad job," Trump told Reuters in May. "I happen to be a low-interest rate person unless inflation rears its ugly head, which can happen at some point."

Citigroup chief economist Willem Buiter told CNBC that he thinks a Trump presidency would lead to an interest rate cut. But not for a good reason: The Fed would be anticipating a trade war.

PHOTOS: See inside Trump's election night event:

16 PHOTOS
Inside Trump's election night event
See Gallery
Inside Trump's election night event
The election night ballroom for Republican presidential candidate Donald Trump is shown in a Hilton Hotel, Monday, Nov. 7, 2016, in New York. (AP Photo/Mark Lennihan)
NEW YORK, NY - NOVEMBER 08: Last minute preparations are being made for Republican presidential candidate Donald Trumps' election night party at Hilton Midtown hotel in Manhattan on November 8, 2016 in New York City. Today Americans will head to the polls and vote for the next president of the United States. (Photo by Mark Wilson/Getty Images)
NEW YORK, NY - NOVEMBER 08: Workers prepare the room for Republican presidential candidate Donald Trump for his election night party at the New York Hilton Midtown on November 8, 2016 in New York City. Voters head to the polls to decide the next President of the United States. (Photo by Joe Raedle/Getty Images)
NEW YORK, NY - NOVEMBER 08: 'The All-Seeing Trump,' a parody of a fortune-telling machine is seen near where the election night party for Republican presidential candidate Donald Trump will be held at the New York Hilton Midtown on November 8, 2016 in New York City. Voters head to the polls to decide the next President of the United States. (Photo by Joe Raedle/Getty Images)
NEW YORK, NY - NOVEMBER 08: Preperations take place before Republican presidential nominee Donald Trump holds his election night event at The New York Hilton Midtown on November 8, 2016 in New York City. (Photo by Neilson Barnard/WireImage)
NEW YORK, NY - NOVEMBER 08: Signs in support of Republican presidential nominee Donald Trump read 'Hispanics for Trump' at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
NEW YORK, NY - NOVEMBER 08: Preperations take place before Republican presidential nominee Donald Trump holds his election night event at The New York Hilton Midtown on November 8, 2016 in New York City. (Photo by Neilson Barnard/WireImage)
NEW YORK, NY - NOVEMBER 08: A cake resembling Republican presidential nominee Donald Trump is displayed at his election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
An attendee holds a sign reading 'The Silent Majority Stands With Trump' during an election night party for 2016 Republican Presidential Nominee Donald Trump at the Hilton Midtown hotel in New York, U.S., on Tuesday, Nov. 8, 2016. Fifty-one percent of voters nationally were bothered a lot by Trump's treatment of women, while Democrat Hillary Clinton's use of private e-mail while secretary of state was troubling to 44 percent, according to preliminary exit polling as voting neared a close in some states. Photographer: Andrew Harrer/Bloomberg via Getty Images
A television screen displays continuing results during an election night party for 2016 Republican Presidential Nominee Donald Trump at the Hilton Midtown hotel in New York, U.S., on Tuesday, Nov. 8, 2016. Fifty-one percent of voters nationally were bothered a lot by Trump's treatment of women, while Democrat Hillary Clinton's use of private e-mail while secretary of state was troubling to 44 percent, according to preliminary exit polling as voting neared a close in some states. Photographer: Andrew Harrer/Bloomberg via Getty Images
NEW YORK, NY - NOVEMBER 08: People cheer at Republican presidential nominee Donald TrumpÂs election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
NEW YORK, NY - NOVEMBER 08: People cheer as voting results for Florida come in at Republican presidential nominee Donald TrumpÂs election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
NEW YORK, NY - NOVEMBER 08: An attendee holds up a sign in support of Republican presidential nominee Donald Trump that reads 'Hispanics For Trump' during the election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - NOVEMBER 08: Attendees check their phones during Republican presidential nominee Donald Trump's election night event at the New York Hilton Midtown on November 8, 2016 in New York City. Americans today will choose between Republican presidential nominee Donald Trump and Democratic presidential nominee Hillary Clinton as they go to the polls to vote for the next president of the United States. (Photo by Chip Somodevilla/Getty Images)
NEW YORK, NY - NOVEMBER 08: Guests attend the election night event for Republican Presidential Nominee Donald Trump at The New York Hilton Midtown on November 8, 2016 in New York City. (Photo by Neilson Barnard/WireImage)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

Read Full Story

Markets

S&P 500 2,190.03 -1.05 -0.05%
DJIA 19,157.24 -34.69 -0.18%
NASDAQ 5,251.18 0.08 0.00%
DAX 10,513.35 -20.70 -0.20%
HANG SENG 22,564.82 -313.41 -1.37%
NIKKEI 225 18,426.08 -87.04 -0.47%
USD (per EUR) 1.07 0.00 0.00%
USD (per CHF) 1.01 0.00 0.02%
JPY (per USD) 113.65 -0.25 -0.22%
GBP (per USD) 1.27 0.01 1.05%

From Our Partners