Millennials aren’t necessarily focused on financial planning. Many, like other generations at their age, are struggling to live in the present. They are straddled with high rent and student loan debt (Millennial student loan debt totaled $1.2 trillion in 2015, more than any other generation). Millennials also want work/life balance with more focus on lifestyle. That lifestyle often includes lots of Starbucks, spin classes, and travel. Nothing wrong with that, but having fun can be expensive!
The Forbes.com article shared below, written by a contributing financial planner, offers some interesting thoughts. The author suggests that instead of paying off your loans earlier by paying an extra $50 or so per month, you may be better off investing that money aggressively for the long term off by putting it into an employer matched 401 (k). Some of the suggested Millennial mistakes in the article are common sense, and pitfalls many of us of older generations remember falling into when we were in our 20’s and 30′, like turning to credit cards to afford luxuries, and living in a fancy place with no financial foundation. The article also reminds Millennials not to feel bad about delaying “adulting” ( i.e. marriage, having kids or purchasing a first home).
Share your thoughts about how your think Millennials handle their finances? What works for you?
Call it FOMO (fear of missing out), call it peer pressure, call it what you will, but I think that in most areas of life, we often just want reassurance that we’re doing all that we can and aren’t screwing up our future prospects in life too much by living in the present.