KOLR10’s financial guru Ellen Rohr is back on Daybreak this morning – with tips for young people to become financially literate.
34% of Millennials are unsatisfied with their financial standing and 18% are not satisfied at all.
Is it tougher for young people to “get ahead” than it was for their parents? Here are some challenges they face, and ideas for handling them.
Challenge: Financial illiteracy.
Do what you love and the money will follow, right? Wrong. There has been some backlash to the heady, greedy days of the 90’s. I’m all for positive thinking. However, the rules of debits and credits still apply. Be willing to learn, and use, financial reports to develop your financial acumen. There’s an old saying… “Trust in God but tie your camel.” Education is key and it’s your job to get the information and understanding you need to play the Game of Life.
Challenge: Student debt.
Hey, we are going to have to deal with this as a society. Schools are perhaps too expensive? The rational for the job may not be valid? Still…too many people just can’t pay the debt back, and the rules are stringent. For instance, you can’t simply refinance the loan.
Do find out what your options are. Here’s a good starting site… Art of Manliness!
And, visit with a financial planner who specializes in people your age. Some pros will advise you to pay down debt fast. Others encourage you to start saving.
NOTE: 63% of Millennials would have difficulty paying a surprise $500 expense.
You may want to skip college. Pursue a business. Work for a start up and craft an equity position. Find a trade and a company who will train you.
Challenge: Pressure to get more and live large.
Much of this is media driven, and is definitely the “American Way.” Consider minimalism. What do you really really need? Consider a trip to a rural area of a foreign country. Walkabout. Remind yourself of – or open your eyes to – simpler ways of living. Choosing to live with less is not the same as doing without.