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Should millennials be more educated about personal finance?

Unfortunately, millennials have something of a poor reputation. Generally assumed by some as being bad with money, lazy and ignorant, the younger generation have been undeservedly questioned for a while now. This is especially true when it comes to their financial situations, with their bad luck blamed on personal flaws rather than economic factors.

Still, it’s hard to argue that some millennials aren’t experiencing tough financial situations due to poor decision-making. Is there anything they can do, and should they be more educated about their personal finances to make things better?

Consequently, here’s some tips millennials can follow to help them get up to speed with their finances!

Current Accounts

No matter how bad things get, if people work hard enough, they raise the likelihood of their situation being improved in some way. Smart decisions are key when it comes to money and knowing how to safely stash it away plays a big part in helping people get back on their feet financially. So, what can be done here in the way of education?

Well, millennials can put their money into one of Think Money’s current accounts, which will help them keep their spending and saving habits under control. After paying in their income, the money for bills is kept aside and can’t otherwise be spent on anything else. The rest can be freely spent. Ultimately, if there’re some bad spending habits at play, these current accounts will help millennials check those impulses and, overtime, change their behaviour for the better.

Budget and Audit

Of course, it’s unreasonable to assume that a current account alone should solve all the millennial’s issues. No matter the situation, some self-discipline is always required for a healthy financial future. Current accounts can spur on that journey, but they can’t completely rewrite a person from the ground up. Only said person can achieve those changes!

Therefore, millennials should educe themselves on not only how to spend, but why to spend. Budgeting and auditing oneself can be great pointers here; they can inform users where their money is coming from and where it’s going. Are there any unnecessary expenses? Is excess spending happening at a certain time or place during the week?

Millennials can download an app and keep track of all their financial information there for their convenience. From here, they can set up direct debits, view payment histories and check their bank balances all from the comfort of their own home instead of making the trip to the bank. Managing money has never been easier.

Financial Advisors

When money problems arise, panic naturally follows on soon enough. Of course, this response, while rather typical, is absolutely not helpful. Any issues need to be remedied quickly here, and time spent worrying is time wasted. Action should be taken fast, and when millennials feel as if they’re backed into a corner, it can feel like there’s nowhere to go for guidance.

Well, utilising financial advisors is one way to go. They’re trained and licenced to give advice and their services usually require a small fee, but nevertheless, they should be able to help the struggling millennial dig themselves out of a hole or two. In the end, it’s important to know that these services are out there. Whether it’s a fixed fee or they’re paying an hourly rate, financial peace of mind should always be sought!

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