Don’t be a Broke Millennial
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 previous generations lived by doesn’t hold true today, says Erin Lowry, 27, brokemillennial.com blogger and 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, Lowry says. And even if their “golden years” may be the last thing on their minds, workers in their 20s and 30s need to ask themselves, “What is my vision of retirement?” Lowry says, “If you want to live a more lavish lifestyle now, then expect to stay in the workforce longer unless you have an inheritance coming or you’re making a lot of money and are diligent about saving.”