June 19, 2012
Millennials and Money
Skyrocketing student loan debt and the uncertain economy? Welcome to the world of the Millennials!
Maybe that’s why Reuters data shows savings plan rates for this 70 million-person generation are increasing. Most stick to spending less than they have.
So, what can other generations learn from this financially savvy set?
“Overall, we see Gen Y much more concerned with budgeting, living within their means and paying off debt; both credit card and college loans,” says Tara Reynolds, Corporate VP of MassMutual.
Reynolds also sees more interest in purchasing of disability income insurance. “This type of protection is bought by a younger demographic,” she explains.
“And the average age of purchase may be getting even younger, as Millennials see the effect that missed paychecks can have.”
Other generations can also take cues when it comes to planning earlier for long-term care, having little or no credit card debt, and being diligent about setting aside emergency savings.
But that doesn’t make them know-it-alls. Boomers can teach younger professionals about retirement planning, life insurance and taking care of family.
Experts add the economy has forced Millennials to be extra cautious while creating new paths that work for them. This could be anything; from changing career tracks, to gaining more qualifications than they originally planned for. So far, it seems to be paying off.
Bonus PINK Link: Want more on Millennials? Get it here.
What’s your Millennial money management trick? Comment.
By Caroline Cox
“Time misspent in youth is sometimes all the freedom one ever has.”
*Supporting images from FreeDigitalPhotos.net, Stuart Miles, scottchan, and David Castillo Dominici.