Millennials get a lot of slack for being a generation who grew up in mostly wealthy households without much struggle. Many still live at home with their parents, well into their 20s and 30s.
Yet, despite a major debt crisis, crushing student loan debt impacting them directly, and an economy that’s still recovering from the Great Recession, Millennials remain a financially optimistic group of people.
TD Ameritrade conducted a survey that found 53% of millennials believe they’ll become millionaires in their lifetime. A majority of them believe they’ll retire early, before the age of 56.
Despite this burst of optimism in their ability to gain wealth, very few millennials actually know how to make that dream a reality. They haven’t developed a knowledge in how to properly invest and save their money.
The cruel reality is, the age of retirement is getting pushed back longer and longer, with many experts predicting that a lot of retirees will be forced to work until they die. Social security is dwindling to nothing and younger generations are taking on so much debt, it’s nearly impossible to save during crucial years when they need to start.
Millennials simply don’t have the financial literary yet to make a realistic retirement goal. Mass Mutual wanted to find out how many people from this generation actually knew about financial matters, and only 17% of 500 millennials got a perfect score.
As they age, they will be faced with the harsh reality that they simply weren’t prepared for life on their own.
This article isn’t meant to be a judgement of millennials, but a wake-up call. Life won’t turn out how they expected and they must be confronted with that reality as soon as possible if they hope to make it. The future looks grim, so they must be prepared for the fight ahead, as they will endure harsher obstacles than past generations did.
In fact, millennials will have to start saving money in their early 20s, which seems incredibly difficult if they’re living at home due to the high cost of rent and tremendous student debt weighing them down.
The best thing they can do for themselves is become educated on their options. If you’re paying back a lot of student debt, it is extremely difficult to save money. There are government programs that can help you pay off those debts MUCH sooner. Financial Helpers can help you navigate those tricky waters before the programs are shut down for good.
Give us a call to learn your options at:
Another thing is to look at ways to curb spending so you can pay off your debts sooner than anticipated. That’s why a lot of millennials still live at home. They simply can’t afford their own place and all the bills that go along with it.
But rather than piling debt on top of debt, millennials can use public transportation, not eat out as much, learn better budgeting skills, get a side gig, make coffee at home rather than the expensive coffee stores, and don’t get a credit card unless it’s low interest.
These steps will help, but it’s up to the person to take the time to gain better financial literacy and have a more realistic picture of their future finances.
