#YouthMonth: Financial advice for millennials
Life is always easier
with the benefit of hindsight. Looking back at her teenage years, Happy
Ngale, Financial Wellbeing Consultant at Alexander Forbes Financial
Planning Consultants, shares some of the rands and
cents advice she would give herself, with today’s Millennials.
Here are 3 things that millenials can do for themselves.
1. Learn how to budget
“Getting into the habit
of healthy money management early is key. The pocket money from my
parents could have been a great start in terms of learning how to manage
my finances. This would have prepared me for when
I started working and earning a salary, because if the habit of good
money management is built from a young age, it is easier to apply these
principles when one starts to earn larger amounts.”
2. Avoid spending money on items I cannot afford.
“Teenagers experience
peer pressure, which means wanting what your friends have. But the
lesson to be learnt is if I can afford what my friend has. If I can’t,
then I have to learn to wait until I can afford it.”
3. Start a savings account
“I would recommend
teenagers open a bank account with a savings feature, as this teaches
you to start putting some money aside. We need to embrace the concept of
saving from a young age, to learn the gratitude
which goes into earning interest and being able to buy what we want for
ourselves.”
Ngale said the Millennial
(Generation Y) mindset differed from those before them, namely the
Generation Xers and the Baby Boomers, because Millennials “prefer to
earn their money to spend it now. If they want to
buy an item now they will make a plan to have it whether they can
afford it or not”.
Baby Boomers on the other hand, tend to buy on loan and develop a payment plan. “They spend most of their working life paying off debt.” Gen Xers are very conservative with their spending and prefer to save.
Baby Boomers on the other hand, tend to buy on loan and develop a payment plan. “They spend most of their working life paying off debt.” Gen Xers are very conservative with their spending and prefer to save.
“When it comes to money, millennials strategize their spending. They are usually committed to getting what they wan
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