The focus for many U.S.
industries and companies has shifted toward Millennial (or "Gen Y")
consumers -- those born between 1980-1995. Millennials are perceived to be the
up-and-coming decision-makers, thought leaders and, from a marketing
standpoint, money spenders.
This is both positive
and negative for Gen Y'ers. Certainly, with the focus on this segment of the
population, Millennials should get first dibs on new technology, new products/services
and political opportunities. Gen Y consumers should be poised to take the reins
from their Baby Boomer parents as leaders of the next generation. However,
statistics show that Millennials may just be the first generation of Americans
who will struggle more financially than the prior generation. Jobs are not as
abundant. Student loan debt is massive. More college graduates than ever must
move back in with their folks and accept positions that workers with a high
school education can easily attain.
It is critical that Millennials learn and adhere to sharp money
management skills that will help to prepare them to budget their money, save
for their future and weather financial storms that may arise.
A recent study illustrates this point:
Student loans are
available to a high percentage of collegians. Due to the soaring cost of a
college education, more students than ever are graduating with a diploma in one
hand and a giant "IOU" slip in the other. This study reveals that 51%
of Millennials do not save any money. That is a problem. When asked
why not:
- 87% simply do not have enough money to save.
- 81% want to pay down their debt before they start to save.
With fewer grads finding employment with adequate income, it then goes to
reason that the dream of home ownership is not realistic for a high percentage
of Gen Y consumers. The New York Times studied this trend. The graph below
illustrates the newspaper's findings:
Now, do not look at
the future as all doom and gloom. Instead, look at these studies as a wake-up
call -- one that drives home the need to be much more fiscally savvy and
prudent. Look for tools that will help you to better manage your money, budget
and save for big-ticket items and set a plan for your future. AltaOne's
Budget Pro personal financial
manager is a free program that does all this -- and more.
Of course, it is not
enough to set up your personal financial management tools. You must stick with
it. Force yourself to make personal financial management a habit, just like
paying your bills on time. Take that extra five minutes per week to make sure
you are utilizing your PFM program and working toward those short- and
long-term financial goals.
The bottom line -- if
you are fortunate enough to land a good-paying position right out of college,
or you if are struggling to find your career, it is vital that strict money
management is a high priority for Gen Y consumers.
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