Weekend Argus (Saturday Edition) - - FRONT PAGE -

LOOK­ING back at her teenage years, Happy Ngale, a fi­nan­cial well-be­ing con­sul­tant at Alexan­der Forbes Fi­nan­cial Plan­ning Con­sul­tants, shares with to­day’s Mil­len­ni­als some of the rands-and-cents ad­vice she would have given her­self.

• Learn how to bud­get. “Get­ting into the habit of healthy money man­age­ment early is key. The pocket money from my par­ents could have been a great start in terms of learn­ing how to man­age my fi­nances. This would have pre­pared me for when I started work­ing and earn­ing a salary, be­cause if the habit of good money man­age­ment is built from a young age, it is eas­ier to ap­ply these prin­ci­ples when one starts to earn larger amounts.”

• Avoid spend­ing money on things you can­not af­ford. Teenagers ex­pe­ri­ence peer pres­sure, which means want­ing what your friends have. But the les­son to be learnt is: if I can af­ford what my friend has. If I can’t, I have to learn to wait un­til I can af­ford it.”

• Start a sav­ings ac­count. “I would rec­om­mend that teenagers open a bank ac­count with a sav­ings fea­ture, as this teaches you to start putting some money aside. We need to em­brace the con­cept of sav­ing from a young age, to learn the grat­i­tude which goes into earn­ing in­ter­est and be­ing able to buy what we want for our­selves.”

Ngale said the Mil­len­nial (Gen­er­a­tion Y) mind­set dif­fered from those be­fore them, namely the Gen­er­a­tion Xers and the Baby Boomers, be­cause Mil­len­ni­als “pre­fer to earn their money to spend it now. If they want to buy an item now, they will make a plan to have it, whether they can af­ford it or not”. Baby Boomers on the other hand, tend to buy on loan and de­velop a pay­ment plan. “They spend most of their work­ing life pay­ing off debt.” Gen Xers are very con­ser­va­tive with their spend­ing and pre­fer to save.

“Mil­len­ni­als strate­gise their spend­ing. They are usu­ally com­mit­ted to get­ting what they want and will earn that extra cash to buy what they want. Mil­len­ni­als are not lazy to take on an extra job to fund the sports car they want.” – Staff Re­porter

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