Magazine article The Exceptional Parent

5 Truths about Millenials and Money: Many Millennials Leave High School and Even College without Any Academic Insight into Personal Finance or Investing

Magazine article The Exceptional Parent

5 Truths about Millenials and Money: Many Millennials Leave High School and Even College without Any Academic Insight into Personal Finance or Investing

Article excerpt

1. Millennials are interested in starting and running their own businesses.

Whether it's within the next few years, or later on in life, startup culture has become more and more appealing. Resources for how to fund a new company or raise money for a new venture are very popular.

Many young adults are trying to find the quickest and easiest way to make as much money as possible. This is also why freelance positions and side hustles are becoming so much more widespread among this demographic.

2. They have a sense of social and personal responsibility

Millennials truly want a better financial future for themselves as part of a better world at large. When millennials get paid, they like earning those dollars through positive social contribution. The same is true when they spend money--they would like it going to the most deserving businesses, the ones going the distance for causes such as sustainability, conservation and social welfare. However, for all the idealism surrounding where money comes from and where it should go, many millennials struggle with basic financial skills such as budgeting and saving, building credit, not to mention investing.

Many millennials leave high school and even college without any academic insight into personal finance or investing. As a result, they may know about Apple stock hitting new highs but have no idea how to buy and sell shares, let alone do so responsibly. They take out college loans but might not understand the long-term financial implications of taking on debt. Additionally, many millennials have so many other, perhaps more exciting, aspects of life to pay attention to that prioritizing learning about personal finance is not likely.

3. Increasing availability of technology is aiding personal finance.

You don't need to be a math or finance genius to know how to invest and potentially profit from the stock market. Learning concepts of various financial instruments and accounts is essential, and it's not hard to do. For instance, you can begin with auditing your own financial health by creating a budget, maximizing your savings and seeing how much you might be able to set aside to potentially invest. From there, you can learn about investments and securities such as ETFs, etc.

4. There's a lack of knowledge about retirement planning and credit.

Millennials are not aware of Roth IRA accounts or other retirement options. Many young adults are interested in knowing how they can invest in the latest tech companies.

Few understand the importance of building credit at this point in their lives and do not understand the importance of having a good credit score. …

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