Erin Lowry, author of Broke Millennial, joins #BoldBiz's Bookstr segment to talk about millennial finances.
Posted by BoldTV on Tuesday, May 30, 2017
Millennials don’t always have the best reputation when it comes to handling finances and money, but they might not be completely at fault. There are many different situations millennials have faced over the years that have made it difficult to stay afloat.
Graduating into the recession
Many people struggled during the recession, but it certainly had a major impact on millennials. In the wake of the recession, millennials had to face wage stagnation, which was only one of the more difficult problems to handle. A study by the New York Federal Reserve in 2015 showed that a recession early in a career can drag down earnings at the time and continue to stunt paycheck growth as people move throughout the job industry. In short, those who entered the job market during the recession may forever be marked by it.
Despite entering the job market at a bad time, millennials may also face financial difficulties because of their lack of financial skills.
Missing the important stuff
An important thing to learn at some point in life is how to manage your finances. Unfortunately, many parents fail to educate their children on finance management, either because the parents don’t know themselves, or because the parents feel that children should learn the skill in school. According to a survey by U.S. Bank, parents aren’t really as helpful to their children because many are misinformed about finances. Fortunately, there are other resources that millennials can use to educate themselves.
Although many millennials are lacking financial skills, it is never too late for them to learn more. Erin Lowry, author of BROKE MILLENNIAL: Stop Scraping By and Get Your Financial Life Together, highlights steps on how to go from a broke millennial to financially savvy. Lowry covers all the major topics like student loans, as well as more personal topics like how to get “financially naked” with your partner.
Millennials should definitely do a little reading and educate themselves on how to manage their finances. Lowry’s book is a great start to learning the basics of managing finances, and it can help millennials get their financial lives together. Hopefully, millennials will soon take matters into their own hands and attempt to become more financially savvy.
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