Call us what you will. Millenials. Gen-Y. Echo boomers. (We’ve been called worse.) The truth is, it doesn’t matter what the “title” of our generation is, since it’s up to us to decide how we’ll be remembered. It’s up to us to counter the way we’re perceived, which unfortunately includes a lot of talk about being a self-centered, unmotivated, and entitled.
Personally, one of the reasons I believe we’ve been given these stereotypes is because of the unbelievable about of things we want to have. It’s the sheer amount of dreams we want to reach in such a short lifetime. We’ve grown up in a very fast-paced environment, sitting in front of computers as kids, seeing the evolution of cell phones, and watching as most people our age pine for and in most cases get as many gadgets as possible.
I’m not saying these “wants” are necessarily bad things. Quite the contrary. What I am saying is that in order to get mostly what we want without being portrayed as entitled, we’re going to need to crack down on our budgets, get out of debt, and learn how to save. So, let’s do this.
1. Let’s Get Out of Credit Card Debt
How many times have you heard this before? A million, right? But, how many times have you taken the initiative? Trust me, I love buying nice things just as much as the rest of you. I counted my pennies from my first job to buy an iPod, and almost 8 years later, I hug my new computer as if it’s my first born child.
Yep, I’m just as bad as the rest of you as far as the things I want to have. The difference is that I work very hard to save up for what I want before I purchase it. I haven’t always done this in the past, but over the last few years, I’ve conditioned myself to save up for big purchases before I buy them. I can promise you that I derive a greater sense of satisfaction from buying something all at once than I ever did paying in monthly installment, other than getting a car or home loan from a reputable bank like say, auto loans from Money Barn. I’m on a mission to get as many people as possible to do this as well. If we all banded together and achieved this, Gen Y-ers would be known as the smart and financially savvy generation, as opposed to the impulsive one.
2. Let’s Pay Back Those Student Loans
We’re the generation who graduated from college during a recession. Or, if you’re a little older than I am, you’re the generation that got laid off a few years after starting your first job.
Gen Y-ers, we’ve taken out a trillion dollars worth of student loans, and I think it’s time we pay them back. Whatever you’re doing, wherever you’re working, pay a little above the minimum on the payment this month. Work harder than you’ve ever worked before. Pick up a side job and apply all the extra money to your loans. Many of us, myself included, have taken out far too much, and if we’re going to get back on track and save for retirement, we have to get rid of them. If we did that, Gen-Yers would be known as the generation that got out of debt instead of the one that got in it.
3. Let’s Remember What’s Important
The world is such a sparkly place with lots of things buzzing, beeping, and in general distracting us from what we should be doing. It’s been proven time and time again that owning particular things won’t make us happy. All the money in the world can’t buy us peace of mind. So, as we go through these tasks of becoming more budget conscious and minimizing our spending, let’s remember to take a second to smell the roses. Turn the phone off from time to time. Go to bed reading an actual book and not one that’s on your bright iPad screen. Take a walk. Enjoy the sky. Remember that it’s okay to make financial mistakes, so long as we learn from them. Then, maybe if we do all these things, we’ll be known as the generation that got it right, the one that finally achieved the balance so many people crave.
Photo Credit: Flickr Creative Commons
FAQs
The most popular source for millennials to get financial advice is social media.
What are the financial priorities of millennials? ›
Grow savings
The most popular financial goal for millennials and Gen Zers in 2024 is to grow their savings, with nearly 60% of respondents placing this at the top of their resolutions list.
What are the money habits of millennials? ›
Millennials' money habits, whether saving or spending, are inextricably linked to the world around them. They may have a reputation for being reckless spenders, but in actuality, millennials are actively saving for emergencies and retirement.
Which generation cares most about money? ›
Aligning on money is all the more pressing for younger generations, who are earlier on in their relationships and careers—nearly half (49%) of Gen Zers view financial compatibility as more important than physical compatibility. That's compared to 40% of millennials, 35% of Gen Xers, and 30% of baby boomers.
How can millennials build wealth? ›
“As a millennial, if you are investing in your accounts — 401(k), Roth IRA, HSA, investment account — setting up automatic contributions on a monthly or per-paycheck basis, and over time if you are increasing the amount you are adding to those accounts, this allows your wealth to grow for you,” said Darren L.
What do millennials look for in a Bank? ›
If a bank offers them the best way of doing that, then they're more likely to use a bank than rely on multiple services. For Millennials, this begins with designing a quality user experience. They want financial products and services that are more streamlined and intuitive.
What do millennials value the most? ›
Millennials embody a set of evolving values and aspirations that greatly influence their choices and behaviors. This generation highly values authority, achievement, and influence, demonstrating a strong desire for control, success, and recognition.
Why millenials are struggling financially? ›
Many factors are at play, including income, debt, dwindling savings, and poor financial choices. Close to 75% of millennial women and 70% of all those surveyed say they struggle to make ends meet with their current salary. The average income for millennials surveyed is $74,106, roughly $35 an hour.
What are the priorities of Gen Y? ›
Gen Y seeks work-life balance
Gen Ys usually seek positions in which they can have a solid work-life balance . They prefer jobs that allow them to spend more time with their family and/or pursue personal goals . In some cases, they may prefer a job with more flexible hours over one that offers higher pay.
What motivates millennials to buy? ›
Millennials value experiences over possessions
Takeaway: The millennial preference for experiences has driven industries such as travel, dining, and live events to cater to this group with curated events, immersive environments, and social media-worthy moments.
Millennials are often maligned as a generation focused more on avocado toast splurges than fiscal responsibility. But the stereotype isn't always true. Plenty of millennials have proven they can budget. And a majority of people in this generation are now homeowners, according to RentCafe.
What is the average millennial finances? ›
The average net worth of millennials has surged from $62,758 to $127,793 since the start of the pandemic. Much of this growth is from real estate; as of 2022, more than half of millennials had become homeowners. The average millennial makes between $52,156 and $62,244 per year.
Which generation has the least wealth? ›
Younger American (millennial and Gen Z) families represented 33.1% of households and owned 9.3% of total family wealth (72% less wealth) in 2023. The baby boomers' shortfall was the smallest of the generations. SOURCES: Distributional Financial Accounts and Institute for Economic Equity calculations.
Is Gen Y a Millennial? ›
Generation Y, also known as Millennials, is a demographic categorization of people born after Generation X and before Generation Z. These people were generally born in the 1980s through the late 1990s and are most often the children of Baby Boomers.
What generation is in the most poverty? ›
More Millennial households are in poverty than households headed by any other generation. In 2016, an estimated 5.3 million of the nearly 17 million U.S. households living in poverty were headed by a Millennial, compared with 4.2 million headed by a Gen Xer and 5.0 million headed by a Baby Boomer.
Where does Gen Z get their financial advice? ›
TikTok has become one of the most popular sources for financial tips and advice, particularly among Generation Z. However, “finfluencer” content often lacks sufficient disclosures, which can make it hard to tell if the information you are getting is accurate and unbiased.
Do millennials trust financial advisors? ›
Fifty-three percent of investors aged 26 – 34 state that they work with a financial advisor because it was recommended to them, followed by not wanting the stress of investing on their own (39%) and not having enough time to manage their portfolio (37%).
How do most people find their financial advisor? ›
Ask friends, family or colleagues for recommendations.
These individuals are often able to give you firsthand knowledge about an advisor, including how responsive they are to communications and how well they explain complex topics.
