Millennials (those born from the early 1980s through the early 2000s) continue to struggle with financial planning. Student debt and limited employment opportunities aren’t the only things holding back Millennials from attaining financial independence and home ownership. Let’s take a look at five money mistakes Millennials tend to make—and see how they can correct them.
- Avoiding doing a budget.
- Misusing credit cards.
, Millennials are struggling to pay credit card bills on time, while also having one of the highest credit utilisation rates of the four generations listed. As a result of late payments and high credit utilisation—Millennials have the lowest credit scores across all four generations. Consider a credit score as a financial report card, which means you should turn in everything on time and pay the balance in full every month.
- Renting forever.
- Saving little to nothing for retirement.
- Skipping life insurance.
One of the benefits of getting a life insurance policy early on is that it will likely cost you less now than later—life insurance is cheaper the younger and healthier you are. Plus, you have no idea if your health might change, which could make getting coverage much more expensive or even impossible later on. And remember that your partner or spouse may likely be liable for your debts should anything happen to you.
From the basic act of budgeting to considering life insurance, these actions can help ground your financial future. Saving for later in life is the foundation for having a debt-free life and a secure retirement plans. Being prepared for the unexpected will make sure your goals and aspirations are met, regardless of your health or longevity. For quality life insurance quote, go to Pinnacle Life and you’ll be amazed how little it costs for millennials.