Are millennials and Gen Zers bad at managing money?

We all have some good and bad habits when it comes to our financial outlook and approach. The millennials born in 1981-1996 are now all entering their productive age. Generation Z is the generational cohort following millennials, born between the late 1990s and early 2010s. While these generations are still setting themselves, they are one of the largest and most diverse generations. If you belong to one of these categories, who is growing up in the digital era, you are prone to be more diverse, educated, and technologically advanced than prior generations.

Millennials and Gen Zers are the generation of unconventional thinkers and risk-takers. Moreover, this generation is realizing the strength of financial planning at a very young age, providing an upper hand over the previous generations to get maximum advantages from money and have a good retirement.

With the plethora of financial information available online, you are a lot more risk-aware. But, you must also have a precise understanding of your own financial situation to make good investment decisions. So, if you are from one of these generations, this blog will guide you in financial planning.

Impulse Buying

Discounts or cash back can reduce your expenses, as long as you purchase items that you really need. Avoid buying pricey items that are not really needed and ensure the costs are within your budget.

You Only Live Once (YOLO) Attitude

Most millennials and Gen Zers often have a ‘you only live once’ state of mind. This will rather bring you the pleasure of a moment. However, it’s also important that you aim to achieve your plans and aspirations in life and hold on to the desire of achieving your life goals by allocating funds to those goals and also hold them for emergencies. Ensure that you also prioritise your future, while you live your present to the fullest.

Debts

It is not unusual for millennials or Gen Zers to use credit cards or loans to fulfill their primary needs, due to excessive spending. The problem arrives when you pay this debt late. So, if you have this habit, you should prioritize paying off all debts before spending large amounts on other things.

Start Investing

To protect your financial future, you must make wise investments depending on your risk appetite and investment horizon. When talking about investments, mutual funds are possibly the best option, even if you are a beginner. Mutual funds can provide you with a diverse portfolio, potential returns, and low costs. You can easily start a SIP in mutual funds for as low as Rs.500. SIP in Mutual funds works with compounding and when you stay invested for a long term, your money could have potential growth. Due to this, SIP into mutual funds is deemed a safer and more convenient option for beginners, like you.

A successful financial plan may hold its challenges. But with little education and guidance, regardless of age or current financial situation, you can begin making a plan for your financial future. As a millennial or Gen Zer, you may will ideally need to make both short-term and long-term investments, and mutual funds offer both. These funds are gaining popularity among youngsters. So, if you’re someone who is looking to start or diversify your financial journey, take a step and start investing in mutual funds.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.