Let’s face it. Millennials take heat from the older generations. No one should be surprised as this same thing happened to every generation since the boys in the Garden of Eden raised Cain. Some of the accusations leveled against Millennials are unfair. However, there is some truth to the one that says, “They don’t handle money very well.” Not to worry, youngster. Gildshire’s Business Magazine is your go-to for financial education. Sit down, and we’ll teach you a few things. Bring Dad along, because we have some knowledge to drop on him, too. Let’s look at the major issues we have heard raised on the subject.
Claim Number One: Millennials don’t know the basics of finance. While true, in at least some cases, the newest adult generation can’t be held entirely to blame. As of the 2018/19 school year, just 17 states mandate high schools to offer personal finance courses. If there is one part of the curriculum that should be restored (along with music and theater, two things that give life flavor) it’s personal finance.
Claim Number Two: Millennials spend in a scattershot fashion, completely without a plan. Guilty as charged. A recent Money Magazine survey found that only 8% of Millennials are operating with a monthly budget. Why is this? Because they see a budget as one big “No, you can’t afford it.” But, Mr. and Miss Millennial has it twisted. Building a budget is constructing a framework to “Yes, of course, we can afford an Alienware Area-51 gaming desktop, for $1,899.00″
Claim Number Three: Millennials DO NOT set any financial goals. Boomers and Gen X are suffering from selective recall here. The day will come that Millennials will decide if they’re working toward buying a home, traveling, saving to start a family or financial independence. How can we be so sure about this? Because that day came for you too, Pop.
Claim Number Four: Millennials don’t know the first thing about credit. Unfortunately, this one is true, and a portion of the blame must again be laid at the feet of secondary schools that don’t prepare their students. Young people 18-25 have almost no idea about a credit score, or what one means to them. This knowledge hole is treacherous! Landlords check your credit score to decide if you get that apartment. Even cell phone companies check it to see if you deserve their best deals.
Claim Number Five: Millennials are way too cautious about investing. In one way, we’re on the young folks’ team. Who sank their money in that pyramid scheme back in the 80s and that risky timeshare ten years later? A cautious eye toward investments isn’t a bad thing. Of course, savings accounts by themselves aren’t the way to build a future. Some bank savings accounts offer an unimpressive 0.0015 % return. You would do just as well by pouring Miracle-Gro on a dollar in hopes it grows up into a $5 bill. Instead, connect with a discount investment outfit (ratings and contact info are in your nearest Google) and begin with some conservative investments.
Claim Number Six: Millennials are easy prey for scam artists. Did you read #5? Scams have always been around. Millennials are most vulnerable because they’re the first group to conduct the majority of business online. That said, Millennials must stay vigilant with account balances. If you spot an $80 charge for bodybuilding pills and your idea of bodybuilding is lifting your eyebrow, get in touch with your bank immediately. They’ll help get you out of an expensive mess.
Claim Number Seven: Millennials spend money on silly things because their friends did it. I get it. You think this is the first generation that has behaved so irresponsibly. Give thanks, Pop, that the internet wasn’t everywhere when you put $1,000 into spinner wheels for an old ride hardly worth that much. That said, social media can tempt us all to match our friends’ vacation with a big one of our own. So, there is truth there.
Was that so painful? If so, you two should go to the beach for the afternoon and bond. Have an Icee on us.