Making Millennial money cool again
Just because society signposts young people as being bad at handling their finances doesn’t mean your 20s aren’t the perfect time to get stuck into some serious saving.
DURING my primary school days, being smart or hardworking was unspeakably lame. If you answered a teacher’s question in class, you might as well give yourself a wedgie on the spot and popularity was inversely related to test scores; the dumber you pretended to be, the cooler you became.
While the cult of mediocrity loosened its hold by the end of high school, the roots of tallpoppy syndrome run deep. When you hit your early 20s, the new badge of honour is to be utterly hopeless with money.
Got fired for trash-talking your boss on social media? Blew all grandma’s inheritance money during a drunken online shopping binge? OMG, that’s so hot and random! Every TV show about millennials follows the same format: a bunch of privileged 20-somethings compete to see whose zany antics will lead them into the worst life decisions. The characters are self-obsessed and pathetic, but they’re portrayed as a hot mess and, like, so relatable.
Anyone who doesn’t follow the script is deeply uncool. Don’t want to go in on a keg with the boys because you’re trying to clear your overdraft? Boooring. And if you really excel – say, buy an investment property – keep it to yourself, or you’ll be treated like a pariah.
By the time you hit your late 20s and notice the fine lines of crow’s feet in the mirror, the social norms start to shift again. Being constantly broke, with limited career prospects, doesn’t seem like such a hilarious romp, especially when some of your mates are buying houses and getting married and even making small human beings.
Here’s the good news: if you’ve got time to binge-watch 22 seasons of The Bachelor, you’ve definitely got time to sort your finances out.
If you’ve got time to binge-watch 22 seasons of
you’ve definitely got time to sort your finances out.’
1. START SAVING
It’s not about the short-term results, so much as building good habits. Most people’s income won’t peak until their late 40s or early 50s, but you have to practice religiously socking away a bit of your paycheck as early on as possible.
2. DITCH THE DEBT
Student loans aren’t a huge concern (unless you’re planning on moving overseas) but personal debt is unforgivable. Cut up the cards, close the overdraft, and break free from the cycle.
3. START PLANNING FOR RETIREMENT
I know it sounds ridiculous when you’re 22, but you can use that massive chasm of time to earn a ton of sweet, sweet compound interest. All it takes is an afternoon to research and choose the right KiwiSaver scheme, then set it and forget it.
4. DEVELOP BROAD SKILLS AND INTERESTS
Whether it’s through formal education or as an enthusiastic amateur, your skills and talents will combine in mysterious ways down the track. This will play a big part in both your future earning power, and your general life satisfaction.
5. TAKE RISKS
This is the time to be entrepreneurial, to go out and get some life experience, quit your dead-end job, or travel the world. Experiment with everything, learn about yourself, and figure out your interests and goals. Open up as many options as you possibly can. You don’t have to become a lifeless, necktie-wearing drone the minute you reach adulthood. Personally, I’m probably going to chip in for that aforementioned keg. I still make quite stupid decisions sometimes, and my life is far from perfectly ordered. But I admire young people who are financially successful, and I’ve tried as hard as I can to follow their lead.
The thought of becoming one of those grotesque Peter Pan adult children from the sitcoms makes me shudder. If you feel the same way, start sowing small seeds of financial responsibility now. I guarantee the future you will appreciate it. Got a burning money question? Email Budget Buster at richard.meadows@thedeepdish.org, or hit him up on Facebook. You can also find links to previous Budget Busters here.