Unlike her parents, when Mia’s first paycheck hit her account, she already knew what she had to do. Mia watched enough personal finance reels and Youtube videos to not have clarity. Despite this, she still had questions - “I know I have to invest, but how do I? Yes I’m gonna save, but how?” And while Mia’s social media knowledge was natural, her parents strongly disapproved. And like any millennial, Mia couldn’t care less. Personal finance wasn’t her strongest suite but Mia wouldn’t take Boomer advice. There were just too many differences between them and her. Some being -
As someone who valued personal space and career growth the most - Mia moved out and went wherever work took her. Like most millennials, Mia spent most on housing and rent. Despite saving far more than her Boomer parents on this, she was still the least likely to be a homeowner. Her parents owned a house before 35. Statistically, Mia wouldn’t have one for a long long time.
Not just Mia, but her younger colleagues too began planning their retirement as soon as they got their jobs. Both millennials and Gen Z have not only witnessed the Great Recession, but felt the panic during it. Mia still doesn’t know what happened in 2008 but she definitely knows that she doesn’t want to lose her shot at a decent retirement because of a crisis.
Contrary to what her parents think, Mia cares about having insurance. Although millennials are not very likely to visit a doctor when they have health issues, they are still insured. Mia didn’t see the need to get insurance before the pandemic, and even then, chose the cheapest package. This also meant minimal coverage. Unlike their parents, millennials expect flexible and transparent insurance packages.
Another way Mia and her friends try to ensure not falling to complete bankruptcy is by reducing their risks. Surprisingly, millennials are conversative when it comes to risks. Despite the Crypto hypes which they might give into, they try keeping their portfolios diverse. This definitely gets multiple sighs and eyebrow raises from their parents. Boomers tend to be more loyal to their portfolio listings, unlike their children who are at ease with moving money.
Memes about being broke, financially anxious, and never being able to afford a house or a car are always on the rounds with Mia. At this point, these memes are a part of her vocabulary. She has a confusing relationship with money.
When millennials blame boomers for creating a terrible financial system which is barely liveable, they mean it. The frustration spread across this generation is valid. That being said, there are a few things each gen does better.
While millennials are making major financial decisions based on social media feeds, boomers are losing out by being outdated. It’s true that each gen can learn a thing or two from each other.
Regardless, millennials must take all financial advice - from boomers or from influencers - with a huge pinch of salt. Take this as a gentle reminder to NOT take financial decisions based on anyone’s advice.
Getting financial planning advice and creating a budget are important steps in family financial planning, as they can help ensure that you are making the most of your resources and staying on track with your long-term financial goals.
To talk to your parents about money problems, it's important to approach the conversation with honesty and transparency, and avoid blaming or accusing them. Express your concerns calmly and respectfully, and ask for their advice and support. Remember that your parents may have their own financial struggles, so be open to their perspective and suggestions. It can also be helpful to come prepared with a plan or proposed solutions to the issue at hand.
Yes, parents should talk to their kids about financial problems, as it can help build trust, teach important money management skills, and prepare children for the realities of adult life. By discussing financial struggles in an age-appropriate way, parents can also help their children understand the value of budgeting, saving, and responsible spending. However, it's important for parents to avoid burdening their children with too much financial stress or information that may be too complex for their age and level of understanding.
Looking after your parents financially can involve various actions, depending on their specific needs and circumstances. Some ways to support them may include contributing to their living expenses, helping them manage their investments, providing financial assistance for medical care, or helping them create a budget and manage their money. It's important to have open and honest communication with your parents about their financial situation and needs, and to make a plan together that balances their needs with your own financial responsibilities and goals. You may also want to seek the advice of a financial advisor or elder care specialist to help you navigate the process.
Financial planning for kids can involve various steps such as setting up a savings account, creating a budget, saving for their education, and preparing for unexpected expenses. It's also important to consider the cost of raising a child, such as healthcare, childcare, and living expenses. Parents may want to work with a financial advisor to create a plan that meets their family's unique needs and goals, and to ensure they are on track for long-term financial stability. Regularly reviewing and adjusting the plan as necessary can help ensure that parents are prepared for the financial challenges of raising a child.