$$ ADVICE FOR MILLENNIALS,
Millennials (born 1985–95), many of whom entered the job market during a recession, face a different set of financial and retirement challenges than their parents: higher student loan debt, an altered and constantly evolving job market and different life priorities, to name a few.
That means some of the financial wisdom that previous generations lived by doesn’t hold true today, says Erin Lowry (right), 27, blogger at brokemillennial.com and the author of Broke Millennial: Stop Scraping By and Get Your Financial Life Together (available May 2). Differences include the following:
Boomers tend to wait until retirement to travel. Millennials are more eager for these experiences now, which is OK, Lowry says, if they also stay on the savings track.
It used to be that workers stayed with the same company for years, even decades. Today that’s often not a viable option, so young workers are wise to shop around for opportunities and learn to negotiate wisely.
In the past, an advanced degree was often the key to success. These days, a degree can be less important than creativity and real job experience.
Pensions, formerly a given, are rare, so millennials need to invest in 401(k)s immediately upon entering the job market. And look ahead. “If you want to live a more lavish lifestyle now,” says Lowry, “then expect to stay in the workforce longer.”
Visit Parade.com/debt for Lowry’s tips on tackling student loans.