It’s no secret that the millennial generation is different. Between the technology they’ve experienced (and even invented) and new rules of etiquette when corresponding through social networks, the distance between millennials and other generations spans more than just years – and financial planning is no exception.
Between crippling student debt, rent prices being through the roof, and their entrance to the financial world sullied by the recession of 2008-12, many are either still living with their parents or are moving back in. When it comes to financial planning, advisors are giving millennials the same advice they gave their parents: have an emergency fund, don’t spend more than you make, and save your money.
Nondini Naqui, chief executive of the Society of Grownups, which is a company that offers classes and services for millennials, says that when it comes to millennials and their finances, it is more important than ever for them to have conversations about money and planning for the future.
It’s important to talk about money as a tool and to use it as such, which starts by setting financial goals then taking steps towards meeting those goals.
And then there’s student debt. Many want to pay it off as quickly as possible, but there’s really no one-size-fits all formula for going about doing this. Luckily there are many repayment plans that people can choose from. Millenials are encouraged to opt-in for a repayment plan that is based on their income.
Finances are never fun to deal with, especially for millenials. But having a good idea of student debt repayment options and setting financial goals can make financial planning for the future both fun and a little easier.