Can millennials be trusted to ensure a proper future for themselves and the following generations? The lack of financial knowledge may be scarier than you think. Here are just 6 mistakes that millennials keep making with their money.
No Retirement Funds
Most millennials tend not to put money in a retirement fund. The generation is already having trouble grasping the concept of a budget, so it comes as no surprise that they make little preparation for the later years.
What is a Budget?
As previously stated, millennials have a hard time grasping the concept of a budget. And this doesn’t just relate to the young ones. The concept of a budget seems very constrictive especially for the generation that likes to spend money.
Living in the Moment
Planning for the future just doesn’t seem cool for some generations. It just makes little sense to millennials to save money when they can use it in the present to live a fun active lifestyle.
It may seem cool to have enough money to do anything while you’re young, but reality eventually catches up to everyone.
Poor Tax Education
No one likes doing taxes and especially not paying them. However, they’re a part of the world we live in. Taxes may affect millennials more than other generations due to their poor level of education on the matter.
There are very few millennials willing to learn and understand the taxation system, which is why most of them lose a lot of money on unclaimed deductions.
The Money Basics
Money is a word everyone throws around like we all know what it means and how it works. Truth be told, a lot of people don’t understand key concepts such as debt, credit, interest, and more.
Many millennials are not well enough educated on the basics of the financial world, which is why they have a hard time making good financial decisions.
Trusting the Wrong Methods
Another side effect of poor financial education is that millennials tend to switch money management methods like they change socks. This is also a problem because of the many radio, TV, and online financial advisors who target millennials for their lack of knowledge.