5. If youâ€™re making money, save it. When youâ€™re young, you donâ€™t always plan for a rainy day. It will come â€“ I promise! Itâ€™s ok to splurge on an item here and there, but save as much as you can. Youâ€™re in the best place to save money. You donâ€™t have a mortgage or expenses associated with living on your own yet. Itâ€™s never too early to start investing or purchasing stock.
In a recent study from credit agency Experian, millennial and Gen-Z adults are struggling to become financially independent. When asked if they still rely on parents for financial support, merely 28% responded that they are totally independent from their families.
These statistics reveal a deeper concern about the unstable economy and job market, as rising inflation, increased cost of living, and insurmountable student loan debt make living completely on one’s own unrealistic for many financially.
Although two of these issues have quelled slightly, with student loan debt repayment on pause until the fall and inflation having cooled down, the circumstances for many adults from ages 18 to 42 make it virtually impossible to be independent or build wealth.
Another probable cause? Their families’ financial savviness. Young adults either shy away from financial planning or follow the decision-making already established during their upbringing, depending on their take of the experience. While some believe their parents are not great examples of financial aptitude and thus are forced to strategize on their own, others are left completely in the dark in regards to their spending. The latter is less common, with approximately a third of surveyors saying their parents never taught them about finances, but the former is almost half of the experiences of the participants.
In today’s society, wealth-building is a fiscal challenge, especially in Black communities. The data revealed in this study, which did not disclose race, only implies further how Black families must be financially knowledgeable and open so that those of younger generation are well-equipped for their futures.
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Source: Black Enterprise