Young people aren’t typically seen as the epitome of wise financial choices. After all, isn’t being reckless with money one of the follies of youth?
But millennials, often stereotyped as having no money or having little of it altogether, aren’t the youth anymore, are they? The oldest members of Generation Y are already in their late 30s.
Sunny Israni, the founder of the personal finance app Clasp, sought to find out the reason why some millennials continue to be bad at money and what differentiates them from the ones on the other end of the spectrum.
After over 100 hours of speaking with millennials across the United States, here are his findings.
What Money Means
First of all, Israni observes that millennials don’t really know what money means to them and that they often equate their view of it to who they are as a person.
On the other hand, those who were better at handling money tend to have a clearer vision of their goals when it comes to their finances. The entrepreneur used one interesting encounter as an example.
An individual from the Midwest stood out for him because of his militance with his savings, even though he was just getting started with his career. Israni interpreted this as the person seeing financial freedom as a part of his identity.
Overspending on Social Activities
Millennials love socializing. That can both be a good or a bad thing.
Israni noticed how the group has gotten into the habit of spending too much on social activities. However, those who have a better hold of their finances know where to draw the line on their expenses.
At the end, it’s crucial to be honest with friends about what their limits are spending-wise. As Israni put it, your friendship shouldn’t be expensive.
Letting Go of the Reins
We live in interesting times. While there’s a lot of talk about saving the planet and companies being environmentally friendly, it can also be easy to succumb to the doom and gloom that global issues like climate change comes with.
There are cases when some millennials just stop trying at all, believing that they can never get a leg up whatever they do. It also doesn’t help that the generation was behind financially when they first started earning their own keep.
Israni warns against falling for this kind of mindset and instead encourages you to push through with striving for money goals.