I am tired of reading articles like this: American millennials have an average net worth of $8,000 — and it’s part of a bigger financial problem the generation is facing.
The results of all of these studies are all about decisions that were choices someone made – not an emergency health crisis, or a loss of a job, but concrete choices to spend that money in that way. Many of the choices that are keeping millennials from saving for retirement are flexible expense choices. That means, if you are a millennial, you are in control of that money choice.
At The WSJ “The Future Of Everything” conference this week in NYC, Ted Benna, the man who invented the 401(k), points to his invention as the savings vehicle that can turn even a modest salary into a sizable retirement portfolio.
How? As soon as you get the opportunity to fund a 401(k) or 403(b) – do so. Process the paperwork ASAP so the first paychecks you get are the paychecks you will learn to live on. In other words, you won’t miss the money being swept into your future investment.
Sunday’s WSJ article ‘Playing Catch-Up in the Game of Life.’ Millennials Approach Middle Age in Crisis makes the case – once again – for EARLY financial education. It highlights how essential this education is to laying a foundation for later-in-life financial decisions:
“If I can’t afford a home, I definitely can’t afford kids,” said Joy Brown, 32 years old. She is a renter who is single and earns $75,000 a year. She also owes $102,000 in student loans and $10,000 in credit card debt. “Myself and a lot of my peers still feel like we’re playing catch-up in the game of life,” said Ms. Brown, a compliance officer for the city of Chicago.