The Need for More Financial Education For Millennials
When the time comes to cross the bridge from adolescence to adulthood, most millennials are in for a rude awakening. They resent not being taught financial literacy in school or having a parent educate them on financial planning for the future. Most millennials are already in debt by the time they are thirty so if you are also a part of this generation and know that you're struggling to pay bills or afford certain necessities, this is the financial education you need.
Don’t be afraid to ask for help
Many millennials refrain from asking for financial advice and often just try to get by, which can put them in a much more difficult position down the road. Rather than consulting a trusted advisor or mentor, they resort to borrowing money and taking out loans; this determines their inevitable debts. If you find yourself constantly struggling and need money to pay bills, financial advisors recommend getting educated on financial literacy. This will give you the knowledge and understanding of managing your finances.
Be aware of your credit score
Many millennials are interested in becoming entrepreneurs with the ever-growing social media outlets such as Instagram giving small businesses a platform. However, receiving funding is a big issue as most millennials may not be educated on their credit score and how much of an impact it has. Learning how to read a credit report and understanding the factors that affect funding when you have low credit scores is imperative.
Make lists
Many of us find ourselves spending money without keeping track, and this can cause us to spend money we don’t have on things we don’t need. Keep track of your finances by making a list of expenses to know where your money is going. It is important to live within your means, pay your bills on time, and know that all your money is accounted for.
Save, Save, Save
Millennials may believe it is almost impossible to save, but with the information around today, it is quite easy to learn. Saving even the smallest amount from your salary can pay off eventually; this will secure your future if you choose to invest your savings, it will also allow you to purchase things you’ve always wanted.
Learn how to budget
Millennials wish financial planning was taught to them before they embrace the real world, and budgeting is a very simple but very resourceful tactic required to handle your finances. Create a budget for yourself; set aside money for your priorities such as daily expenses, rent, savings, and a small amount for personal spending.
It is imperative that we educate adolescents on the importance of financial planning and help them manage their funds; many of them are still struggling to pay off student loans well into their thirties. Millennials are growing depressed with financial struggles and often worry about whether they’ll be able to secure a future for themselves, a business, and even a family one day. But it is not a lost cause, with these basic rules to abide by, you are one step closer to financial freedom.