The word, “Millennial,” has become a buzzword across the media. So, who are the millennials? The general consensus is that millennials are the generation of people born between the years 1980 through 2000. While this is a large age range, the majority of people in this bracket are either preparing to join the work force, or in the early years of their careers. Because of being in this stage of life, many millennials have similar financial concerns.
Creating a Budget
For people at the beginning of their career, this is likely the first time they have ever had a disposable income. College tuition is probably the biggest expense the average millennial has had to date, and with the exception of remaining student loans, this is an expense they have moved passed. Having a bit of spending money is a new and exciting concept, however, it comes with an added headache. Someone newly graduated from college has most likely never created a personal budget before. Because of this, it can be difficult to determine how much of one’s take home income should be going to paying for rent, into savings accounts, towards paying off debt, and as spending money.
When you’re in your twenties, it’s very unlikely that retirement is the most pressing issue on your mind. However, the sooner you start planning, the easier it is to save for your ideal retirement. At a young age, it can be hard to picture your life that far down the road. This factor combined with unfamiliarity as to how to save for retirement in general makes this a large financial concern to the millennial generation.
For those either graduating college or unemployed, finding a job would naturally be a primary financial concerns. Finding a job can be a major stressor to an unemployed millennial, and for a good reason. More and more college students are becoming, “boomerang kids.” This means that when they graduate from college, they are not financially able to live independently, and have to move back in with their parents. Lacking financial independence is a very prominent fear for millennials who have yet to solidify their career plans.