Your Parents’ Financial Advice Won’t Work For You
Due to a lack of financial literacy in schools, most of us got our money education from Mom and Dad. But the prior generation grew up during very different economic times. That means their actions and attitudes about money are largely irrelevant for younger generations.
Here are 6 notable differences between you and your parents that lessen the relevance and efficacy of what they told you about money:
- Attitudes towards money:
Research has shown that millennials are often more cautious with money, and have a greater focus on saving and investing for the future. Whereas your parents may have had a more carefree approach to spending.
2. Spending priorities:
Millennials are often more focused on experiences rather than material possessions, so you likely prioritize wellness, travel, and personal growth while your parents spent money on clothes and cars.
3. Retirement:
Many millennials are behind in their retirement savings compared to their parents, due in part to the shift from traditional pension plans and towards 401(k) plans. Unlike your parents, building a retirement nest egg is likely 100% your personal responsibility.
4. Homeownership:
Millennials are buying homes at a later age and a lower rate than their parents because of various factors, such as student loan debt, tighter lending standards, and lower levels of savings. It was a lot easier for your parents to get their first starter home.
5. Debt:
Millennials are facing higher levels of student loan debt compared to their parents, who may have had lower tuition costs or the option to work their way through school. Your parents likely didn’t have a massive debt burden when they started their careers and families.
6. Economic conditions:
Millennials came of age during a period of economic upheaval and financial crisis. Conversely, your parents were blessed with economic prosperity and growth when they were just starting out.
See a common theme?
You have a greater desire to embrace abundance and save for your goals than your parents did. But you also have more stumbling blocks than they ever encountered. So the next time they’re annoyed that you aren’t following their guidance, you can school them instead.
Here’s the good news:
You have access to resources that your parents never did: courses, books, podcasts, and coaching.
But are you taking advantage of them?
