For a long time, millennials got a bad rap about money and their ability to save for a rainy day or retirement.
However, a new "relationship with money" survey by financial services firm Edward Jones found that more Americans considered themselves to be "saving" than Gen-X Cohort (48 percent vs. 46 percent) of their parents born between 1981 and 1996. Comparison. ), However, even the millennials were able to keep the emergency fund (75 percent vs. 66 percent) away.
That is true. The same millennials had their motto "Why buy a car when you can Uber?"
"It dispels the myth that millennials are not as financially focused as other generations," said Nela Richardson, an investment strategist at Edward Jones.
And the survey is not superfluous. This is supported by other research.
Millennials are heavily in debt, with more than 42 percent holding retirement accounts, the largest share of those under the age of 35 since 2001, according to the Federal Reserve Survey on Consumer Finance.
Part of Millennials' focus on saving may stem from memories of the Great Depression.
"In the late 2000s, the oldest group of millennials entered the worst job market after the Great Depression of the 1930s," Richardson said.
"For young millennials, watching that experience with their parents and other family members makes them more aware of unforeseen events such as market downturns or the loss of a home or job and hence they become more conservative. It comes down to spending and saving on their adult lives." Richardson said.
The potential alarm bell that Edward Jones found in a sample of 2,000 adults nationally aged 18 and over: 92 percent are honest with themselves that there is room to improve their financial health and save money. More than a third of these are enough to make you feel “anxious” or “overwhelmed”.
If this sounds familiar, here are three steps to consider:
Identify your money feelings. People often have emotional reactions to money. You get excited about getting a big bonus at work; The logical part of your brain (at least invest a lot) fights with the emotional part so the anguish over what to do with it also freezes (let it all out!) The main thing to know is that your emotions determine your spending, savings, and investment choices can lead to poor decisions.
Develop a financial strategy. Keep your start sober by identifying your main goals — new home, college for your children, down payment on a comfortable retirement — and stick to a solid, long-term path to achieving them.
Get a "responsible partner". Meaning, with whom do you share your financial matters comfortably. It could be a family member. Or a professional financial advisor, such as a local man in Edward Jones, who has the necessary perspective, experience, and skills to help you take the right action for your situation.
“Whether you are tied up with student loans, saving to buy a home, or trying to build an emergency fund, there must be trade-offs to balance these short-term goals and our long-term financial future like an investment. Retire, ”Richardson said. "Without a good financial strategy, most people will be proactive rather than reactive and will feel that their money is controlling themselves."
You must be logged in to post a comment.