Nowadays Millennials are often required to handle the matter of money. However, they have a specific financial view and attitude.
According to the new Young Adult Financial Literacy Study, more than 75% of young people aspire to have a better financial situation than their parents do. They are ambitious, but despite that, their financial planning stays uncertain. If you are one of those, read how to back up your desires with the actions.
Parents usually talk to the children about the danger of drugs, weapons, and alcohol, but few of them talk about the cash. If you use money in a wrong way, it can also become a problem. Unlike the older generation, millennials do not possess a deep knowledge. That is why they follow the path of least resistance turning to Installment Credits online and thinking about same day loans like a problem-solving blessing.
If you are a parent and want to raise in your kid good financial habits, you have to become a role model. If you are a child, be open to have a conversation, ask how to manage your budget and how to make the right steps. Also, if you really strive for financial success, do not be lazy to dedicate time to self-education like, reading books, attending training and so on.
Today’s generation rarely plans their future accurately. For example, when they think about buying expensive gadgets, they do not realize how it can influence their future financial state. Young people struggle with investing and correct distribution of the earnings.
According to the already mentioned studies, more than half of responders stated that they have a debt, and only 3 percent (!) of them would pay the debt back if they were given $1,000. A lot of young adults also stated that they do not have any savings or emergency fund.
In order to achieve success, you must set the clear goal, and, furthermore, establish the priorities. Assess how much money do you earn, spend, save and invest. And remember the three rules:
- The duly debt repayment is a positive guarantee of your financial standing;
- Saving some money for urgent use (for instance, medical bills or car repair) is crucial;
- The best investment you can make is you, i.e. your degree, skills, health.
Let us be honest with the numbers, millennials are the young adults who are obliged to pay the student debt because of increasing education cost. Thus, most of them are forced to work on low-paid jobs and pay the debt with the major part of their wage. That is why they prefer to enjoy spending the rest and do not think about the risk of burden. This is one more reason to have a financial plan.
Firstly, a financial plan enables you to analyze what is the most comfortable way to pay your student loan. Secondly, it lets you understand, what and how much investments you can do after repaying a debt. Financial optimism is good, but you should build a financial plan in order to know how much funds you need for your living. Everything may seem achievable until you try it and see the cost.
Millennials likelihood to waste money is a sign of negligence, which can play a trick with them in the future. Serious financial goals are hard to reach if you do not have a plan and funds. Do not count on an inheritance from your parents. Do not waste your money on experience only, because it is hard enough to satisfy your needs. Take the responsibility of your future and put your ambitions into effect correctly.