Millennials Worry About Their Financial Future and Are Concerned With Financial Planning

The Millennial Generation would enjoy a road of financial success greater than that of their parents, but they worry about the financial opportunities and their financial future with life expectancy in their generation estimated to top 100 years and more.

Out of 3,000 respondents surveyed by Allianz Life Insurance Company, an estimated 63% of millennials say “worries about money” is the top concern for planning their future and their approach to when and how they work, learn, and raise children. Millennials are concerned of their future financial security, financial planning, and saving money.

For many millennials, money and financial security for the future is the most important factor dictating the direction of their lives such as starting a family and planning for mortgage and retirement .

According to one survey, millennials have an average of $150,000 in mortgage, student loan and credit card debt . The concern is that the level of debt presents major challenges to creating alternate life experiences. Some experts, however, predict that millennials will be a major factor in a next real estate boom as they rush to make long-term financial decision with such investments as a home.

The survey went on to cite that more than eight out of 10 millennials say money was the top factor that got in the way of taking advantage of non-traditional opportunities compared to 70% of boomers and 78% of Generation X. Despite the challenges, Allianz found out that millennials understand the need to save more and have a plan in place if they want to leverage their options.

When asked what they felt they needed to do since experts predict they will live to the age of 100 (on average), millennials’ top responses were “I better start saving money” and “I better get serious about financial planning.”

Old Proven Methods Still Have Value

The Old Proven Methods still have value even for this Millennial Generation: (1) write a plan, (2) create a budget, (3) save before you spend, (4) set reasonable goals and (5) be less impulsive when making financial decisions such as having to buy the latest gadget, the newest car, or the trendiest wardrobe. Learning to live within your means is an age old lesson in life that holds value even today.

Everything is a result of a Choice

What it requires, however, is taking 100% responsibility for every choice you make. If you do not like your current financial circumstances, then perhaps start with making different choices concerning your money. Try learning more about your money, future value of a dollar today and the laws of compounding interest –the rule of 72. Google it!

Ten Steps to Financial Freedom for millennials

Here are some of the ways for millennials to experience financial freedom

1. Assess every dollar you bring in and spend every month
2. Keep all the receipts to keep track where your money has been spent
3. Write down for 30 days in a journal every dollar you spend and on what
4. Categorize all of your expenses (food, entertainment, etc) so you can see by each category how much you spend
5. Set budgets and live within your means
6. Set aside 10% to 15% of your monthly income and then live on the remainder
7. Write a 30 day, 90 day, 180 day and 365 day plan and goal for an amount you want to set aside for cash reserves
8. Make a weekly review of your financial efforts and adjust if you are not on the right track
9. Find a mentor or financial coach that will help you set up the tools to use
10. Start accelerating the paying off of your debt (short term, long term)

No matter the generation (Millennial, Boomer, GenX) the rules of money work the same and have a proven record of success if followed. It seems that unless we have it in a game -- on an iPad or in an Xbox -- then it is somehow not “Dope” or “Cool”. On the contrary, those that use time tested principles are the same people who have financial security! Something must be working.