Millennials and Finance

Who Exactly Are the Millennials?

Millennials are a unique generation, also commonly known as Generation Y. They are very independent, education minded, and aware of social issues, and they have been able to merge technology with minimalistic living. It is the millennial generation that brought the terms “nerd” and “geek” into the mainstream, where they are no longer considered negative.

Millennials Have Grown Up With Technological Advances

What truly separates millennials from Generation Z (those born in the generation after) is that millennials grew up through many technological changes over the years. Cell phones and the internet have always been around for them, but they watched the internet advance from AOL dial-up to fiber speeds, and they adapted from flip phones to color screens to touch phones and smartphones. Millennials use technology just as well as Generation Z because they grew up with the innovations, and they have not forgotten how far we have come.

What Does This Mean for a Millennial’s Financial Future?

There are fewer people in Generation Z, meaning millennials will not have nearly the financial backing from Social Security that earlier generations had. Millennials are contributing to Social Security, but they will not receive the same benefits.

Millennials are paying in enough to more than provide for Generation X and the baby boomers before them. These continued payments, along with other debts like student loans, leave many millennials without a savings account.

Because of the large amount of debt many millennials face after college, such as student loans, starting a family is often not a priority. Starting a family later in life also pushes retirement age up. Kids start college later in a millennial’s life, along with other expenses such as extracurricular activities, sports, and school. Therefore, it is important for the millennial generation to begin saving and preparing for retirement earlier.

Many millennials are waiting longer to get married and waiting longer to have children. The average age for Generation X to start a family was around 20 to 25 years old.

Juggling Savings and Debt

With the amount of student debt a millennial faces, it can be difficult to set aside savings while paying high interest rates on student loans. However, the need to save early is greater than ever.

Christian Financial Advisors understands that cutting costs and putting aside savings right after college is much easier said than done. Finding areas to cut back and save for the long run is important, especially given how Social Security and retirement payouts are looking for the millennial generation.

Living for the Now and Preparing for the Future

It is difficult to think so far ahead when it comes to retirement income, especially when you are part of a generation that lives for the now. Why not continue to live for the now while preparing for the future? They may seem like contradicting ideas, but they can go hand in hand.

Where to Start With Saving

Starting out at $200 a month would be ideal. However, we understand that this is a high number, especially for millennials just graduating from college. Instead, start in lower increments of $50 a month and move up from there.

The financial team at Christian Financial Advisors is here to offer advice on savings, retirement plans, and investments. We understand the millennial generation and your importance, and we want to make sure you and your family are well cared for in the years to come.

Contact us to see what changes you can make to help prepare for your financial future. Call (830) 609-6986 to set up an appointment with a representative at Christian Financial Advisors.