When it comes to forming the foundation for long-term financial success, the next generation of investors is coming into their own with a boatload more debt and limited knowledge about how to tackle it, how to achieve financial security, and how to plan for the future. Read on for tips and financial advice for millennials to start 2018 with a bang.
A Financial Plan for Millennials Is Not Only Possible, It’s Necessary
When it comes to financial literacy, the numbers for Americans are woefully low, especially when it comes to the millennial generation. As our financial advisors know, managing your money can be a full-time job for anyone. However, according to the most recent research, while millennials consider themselves financially savvy, less than 10% of more than 5,500 millennials demonstrated a high level of understanding when it comes to their finances.
The survey, conducted by the National Endowment for Financial Education and George Washington University, highlighted the new financial challenges facing millennials as they come of age.
According to a statement released by the endowment’s President and CEO, Ted Beck, the endowment’s president, “This generation is diverse and highly educated. However, their overconfidence puts them in an extremely fragile financial position, and sadly, they don’t realize it,” he said.
Money matters to millennials, they just aren’t sure what to do with it
While the majority of millennials are banked and more than half have retirement accounts, there remains a significant gulf between real financial literacy and financial confidence for millennials that must be bridged. For example, while around 70% of millennials believe themselves to be financially literate, less than a quarter of them have command over financial education basics.
Money advice for millennials in 2018
- Economize by prioritizing paying down debt and establishing some savings for your future.
- Avoid incurring new debt that will hinder your financial growth down the line.
- Establish or build your credit to make those ‘big’ decisions like buying a home or starting a business easier.
- Start thinking about retirement and what plans best align with your life goals.
- Prepare for emergencies by having a ‘rainy day’ fund.
- Manage your raise responsibly by allocating your income toward your financial priorities.
- Work with a financial advisor to create long-term financial plan
- Start talking about money with your financial advisor, your partner, and your family.
- Get life insurance.
Find Your Way to Financial Success in the New Year
Curious where millennials go for financial advice? As experienced financial advisors in Las Vegas, our team has the tools, knowledge, and learning opportunities millennials need to stay on top of their debt and start building a brighter future, today.