Mil­len­ni­als – the new trans­form­ers

The McLeod River Post - - Viewpoint - Spe­cial to the Post

Mil­len­ni­als are now the largest co­hort in the Cana­dian work­force. Small won­der they are driv­ing work­place trans­for­ma­tion and are des­tined to re­shape our coun­try and pos­si­bly the en­tire world. And yet, many of them still live at home.

Ac­cord­ing to the 2016 Cana­dian cen­sus:

‡ 34.7 per cent of young adults aged 20 to 34 were liv­ing with at least one par­ent in 2016, a share that has been in­creas­ing since 2001.

‡ 62.6 per cent of Cana­di­ans aged 20 to 24 years lived with their par­ents in 2016 – com­pared to 58.3 per cent in 2001.

Mil­len­ni­als choose to re­main at home for rea­sons that range from the fi­nan­cial con­straints they now face, stay­ing in school longer to ef­fec­tively com­pete in the job mar­ket (while shoul­der­ing steadily in­creas­ing post-sec­ondary ed­u­ca­tion costs), to es­ca­lat­ing hous­ing costs.

Par­ent­ing styles like “he­li­copter par­ents” (who hover over their chil­dren and mi­cro­man­age their lives) may also be a fac­tor in the mil­len­ni­als’ de­ci­sion to linger longer at home. One down­side for par­ents of many mil­len­ni­als is hav­ing dou­ble-duty re­spon­si­bil­ity for their older chil­dren and their own par­ents. These are “sand­wich gen­er­a­tion” par­ents, whose emo­tional and fi­nan­cial sup­port of both their par­ents and their chil­dren can take a tremen­dous toll on re­tire­ment sav­ings.

While it’s true that for many young adults, liv­ing with par­ents is a fis­cally re­spon­si­ble de­ci­sion even when they are work­ing full-time and can be an ideal way to save for a house or start a busi­ness – leav­ing the nest is an im­por­tant rite of pas­sage for both par­ents and chil­dren. And whether the move is months or years away, it’s a good idea to set a date and make a plan. +ere’s how to pre­pare for nest-leav­ing:

‡ Pay off debt – es­pe­cially high­in­ter­est debt, be­fore it’s com­pet­ing with your rent or mort­gage pay­ments.

‡ Es­tab­lish a good credit his­tory – get a credit card for small pur­chases and al­ways pay the full bal­ance by the due date.

‡ Save for ma­jor pur­chases – pay cash for fur­ni­ture, ap­pli­ances and other large pur­chases.

‡ Build an emer­gency fund – for mi­nor set­backs like home or car re­pairs.

Both mil­len­ni­als and their par­ents should talk to a pro­fes­sional ad­vi­sor about strate­gies to help avoid hefty debt and to bal­ance pri­or­i­ties while main­tain­ing a sound, long-term fi­nan­cial plan.

This col­umn, writ­ten and pub­lished by In­vestors Group Fi­nan­cial Ser­vices Inc. (in Québec – a Fi­nan­cial Ser­vices Firm), and In­vestors Group Se­cu­ri­ties Inc. (in Québec, a firm in Fi­nan­cial Plan­ning) presents gen­eral in­for­ma­tion only and is not a solic­i­ta­tion to buy or sell any in­vest­ments. Con­tact your own ad­vi­sor for spe­cific ad­vice about your cir­cum­stances. For more in­for­ma­tion on this topic please con­tact your In­vestors Group Con­sul­tant.

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