#YouthMonth: Financial advice for millennials

Life is always easier with the benefit of hindsight. Looking back at her teenage years, Happy Ngale, Financial Wellbeing Consultant at Alexander Forbes Financial Planning Consultants, shares some of the rands and cents advice she would give herself, with today’s Millennials. 

Here are 3 things that millenials can do for themselves.

1. Learn how to budget

“Getting into the habit of healthy money management early is key. The pocket money from my parents could have been a great start in terms of learning how to manage my finances. This would have prepared me for when I started working and earning a salary, because if the habit of good money management is built from a young age, it is easier to apply these principles when one starts to earn larger amounts.”

2. Avoid spending money on items I cannot afford.

“Teenagers experience peer pressure, which means wanting what your friends have. But the lesson to be learnt is if I can afford what my friend has. If I can’t, then I have to learn to wait until I can afford it.”

3.  Start a savings account

“I would recommend teenagers open a bank account with a savings feature, as this teaches you to start putting some money aside. We need to embrace the concept of saving from a young age, to learn the gratitude which goes into earning interest and being able to buy what we want for ourselves.”

Ngale said the Millennial (Generation Y) mindset differed from those before them, namely the Generation Xers and the Baby Boomers, because Millennials “prefer to earn their money to spend it now. If they want to buy an item now they will make a plan to have it whether they can afford it or not”.

Baby Boomers on the other hand, tend to buy on loan and develop a payment plan. “They spend most of their working life paying off debt.” Gen Xers are very conservative with their spending and prefer to save.

“When it comes to money, millennials strategize their spending. They are usually committed to getting what they wan

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