Newsflash: Millennials Are Fiscally Responsible - They Have to Be!
July 27, 2018 | By Mason Roberts
Ask the average person on the street about their perception of millennials and you’re bound to get the stereotypical responses: selfish, entitled, lazy, self-centered, unmotivated, naïve, spoiled, etc. Society often has a tendency to paint groups of people with the same wide brush, but in this case reconsideration is warranted before another brush stroke takes place. Why? Because millennials apparently are good with their money and pretty financially savvy!
To their credit, millennials appear to have learned from what parents and others have experienced. Of particular significance was the 2008 economic crash, which left numerous people in precarious situations, such as unemployment, cash flow interruptions, and upside-down home equity. These lessons, coupled with today’s tough economic landscape, have caused many millennials to sit up and take notice. The following are some of the significant factors that concern today’s millennials:
- Ever-Increasing Rents: Often not having enough money to initiate a home purchase means millennials are forced to deal with significantly more than their parents did to purchase a home, as wage increases often fail to keep pace with rising home prices.
- Student Loan Debt: Although this is certainly not surprising news, it is a harsh reality faced by many of today’s millennials. The cost of college has risen substantially, causing many young people entering the job market to be saddled with debt that may take decades to pay off.
- Ever-Increasing Child Care Costs: For the most part, in today’s society, the one parent income home has become a thing of the past. Two income families appear to be the norm rather than the exception, and constantly increasing child care costs can be a significant financial burden on millennials with young children.
Faced with these challenges and more, one might wonder how the millennials are successfully handling their finances. Some of the answers may surprise you, but not because they are radical and unique; it is because they are techniques that have been around for ages, only to now utilized once again by the millennial generation.
- Millennials live within their means: Whether it’s based on previous family experience or other reasons, millennials appear to be adept at creating a budget and sticking to it. They wisely know their financial limitations and strive to live within them. Where a carefree generation might have once overspent on vacations or concert tickets, millennials tend to do so only if they can truly afford it.
- Millennials spend more time saving money for that first home: As a result of stringent budgeting, millennials looking to buy a home have a savings plan, and adhere to that plan. Although saving for that home can take considerable time due to increased housing costs, they tend to be patient and wait, preferring to delay their gratification until they can purchase comfortably, without worrying about being in over their heads.
- Millennials are technologically savvy: With their ever-growing knowledge of today’s technology, millennials have a decided edge regarding the smart management of their finances. They conduct their banking from a mobile device and view their current finances in real time. They use a variety of apps to view their credit ratings and available interest rates. They access sites that will assist them in financing/refinancing a variety of things, such as homes, autos, credit cards, and student loans. Where it once took previous generations days to pore through such research, millennials can quickly complete it with a few taps of a finger or clicks of a mouse.
- Millennials are tax savvy: Another benefit of today’s instant access to information is that millennials have become tax savvy as well. There are numerous sites that offer free advice on how to take advantage of various tax deductions and savings, including education credits, deduction of student loan interest, self-employment deductions, moving expenses, and retirement savings credits.
No matter how careful you are with your money mapping, unexpected financial detours occasionally pop up. Don’t stress when it happens; use one of our convenient, affordable installment loans to help you and return you to the road of financial security.