Generation Y, the up and comers, the millennials, those born in between 1981-’95 fall into this bracket. Generation Y are observed to have plans and goals, with no real knowledge or direction of how to achieve them. With the largest generational transfer of wealth underway, (about $30 trillion!) it could be time for Generation Y to start thinking about their financial goals. It is hardly common for Generation Y to have sought out the advice of a financial planner.
Generation Y has always been a largely outspoken generation, they live in the now and that has led to them having much higher debt levels then the baby boomers or generation X at the same age. Due to the high level of debt and the rising prices of the housing market, it is crucial that financial advisors are brought into the mix.
It is not always easy to involve financial planners and recognise issues but it is vital nonetheless in creating wealth for the future. With the advice and counsel that a financial planner can bring, especially from such a young age, as there are years and years ahead of them in terms of creating wealth, it can make a huge difference between now and retirement. Financial goals come in many different forms and rationales – for some Generation Y it might not be about saving for that first home, or paying off a mortgage. It could be helping putting things in line so that they can travel overseas, buy that first car or even simply seeing if they can move out of home. Financial advice can bring about all kinds of different solutions and can be used in numerous ways. For generation Y the idea of financial management could be daunting, thus putting them off from starting down the right path.
Gen Y is already the most highly educated generation ever, with just over half (52%) having attained a non-school qualification. The flip side to this coin however is the ever present growing number of young people registering debt agreements to fund their education, lifestyle and living expenses. To be able to contend with higher tertiary education debts, rent and costs of living it is essential Gen Y take the initiative and manage their finances accordingly.
Today may be the day that you start down the path of creating a better future for yourself.