A Millenial’s Guide to Spending and Saving
Despite several dangerous assumptions to the contrary, millennials have proven to be the most well-educated, highest saving, work-focused generation in the country. With a higher percentage of millennials in the full-time workforce than either their parents or grandparents, the problems with millennial financial situations must come from other sources.
The unique financial challenges millennials face places a significant obstacle ahead of even the most diligent young professional to achieve a strong financial beginning. Despite a higher percentage of college graduates than any other generation, a college degree represents the minimum requirement for nearly all entry-level professional positions in today’s professional world. With far lower median incomes than their predecessors for similar work, not to mention housing costs far exceeding that of their parents, the average millennial begins hitting a financial wall from the very beginning.
That higher education also doesn’t often include practical guidance on how to plan for the future. Much of the advice so brusquely handed down by their baby boomer grandparents is no longer applicable in today’s unusual economic climate. Millennials save at high rates, despite low median incomes, but without guidance on proper investment of those saved dollars, the goal of retirement approaches the unattainable.
The understanding and guidance of the Gen X and baby boomer generations has become a critically lacking component to the success of the millennials. They live in a different world than the one their parents and grandparents made their way in. While many millennials are forced by the housing market to continue to depend on financial support from their families, support in the form of guidance and understanding will go a long way toward helping the young professionals achieve the independence and self-reliance they need.
With the tips and advice in the infographic below, even the modest-income, high cost of living scenario can result in a strong financial position.
Published by Tiffany McAdams