Millennial Money Habits that Need to Stop
As the millennial generation navigates its way through college, these “youngsters” born before the year 2000, find themselves on the verge of becoming the most powerful generation on earth. How? Simple.
Money = power. And millennials… well, they have a lot of money.
Needless to say, much of the world’s financial stability will soon rest on the shoulders of those who are only a decade removed from ruling the playground. With such big responsibility looming in their not-so-distant future, millennials need to get serious about the way they use their money - specifically, their spending habits.
Sounds intimidating? It’s really not. Below are three simple things that millennials can stop doing today to help them better manage their money. Over time, these small changes can help millennials prepare for the future.
1. Tracking a budget on the “Notes” app
People, we are living in the 21st century. If there is anyone who should be able to “find an app for everything,” it’s the millennial generation.
Instead of double-checking the bank account before every purchase, millennials would do well to incorporate a budgeting app into their regular smartphone use. Awesome apps such as MINT, PocketGuard, and YNAB make budgeting easy and can help any user become more financially literate within a matter of days.
2. Using a Credit Card
All too often, millennials succumb to that item that they just “cannot” live without. Whether it’s a nostalgic Arthur t-shirt on social media or the “hot-n-ready” pizza sticks on their way out of the grocery store, millennials are quite comfortable swiping their credit card. After all, it’s only $10. They’ll “transfer some money” later, right?
These kinds of purchases occur frequently among the millennial generation. The problem? As the spending becomes habitual, they are eventually finding that their next paycheck doesn’t actually cover all of those “must-have” items.
The solution to this problem is easy: just eliminate the credit card. With high credit limits and easy access, these cards are dangerously convenient.
3. Making social media-driven purchases
Of all spending habits, this is likely the most prevalent. Dating back to Jr. High School, millennials feel intense pressure to “fit in” or “be cool.” Better known as peer pressure, this is perhaps the strongest force behind consumer purchases.
As time goes on, it seems that millennials are falling victim to these pressures more than the generations before them. Why could this be? Well, keep in mind that millennials also grew up with social media; something that the generations before them didn’t have.
Fashionable clothing, the latest tech gear, and even popular vacation trips are all catalysts for these social media-driven purchases. If millennials want to get a better handle on their finances, they must stop allowing social media to influence the way they use (and think about) their money.
By Learn Accounting Free | 2016-06-09 16:29:42 | Uncategorized | 0 Comments
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