Millennials And The Challenge Of Financial Literacy
To be financially literate is to know how to manage your finances. It does not only mean that you know how to save and when to spend; it extends to more complex principles such as borrowing money, investing, planning for retirement and insurance.
Being in the era of social media, millennials have come to embrace the YOLO (You Only Live Once) lifestyle where partying, travelling, buying the latest gadgets and fashion trends have become their ultimate life goals. Of course, they may have considered saving some money at least once in their life, but the looming issue still remains that some millennials grow to become financially dependent.
No matter what your age is, it is never too late to learn, and technology has made the learning process even easier.
Find the right apps. With lots of downloadable apps available, managing funds have never been easier. Downloading a virtual wallet, or a money tracker app, could jumpstart your way towards financial literacy. These apps enable you to monitor your income as well as your expenses, and by the end of the week you get reports on how much you have saved. Through these apps you get to be more conscious of your spending habits and you may easily cut-off the unhealthy ones.
Know your financial personality. Whether you be an aggressive investor, a conservative, or someone in the middle, you must be aware where you should classify yourself. Millennials being young, and gets to keep their salaries mostly to themselves, are considered aggressive investors, and are highly recommended to invest their money on businesses, tech start-ups, or even the stock market.
Find ways of generating passive income. Passive income is income that you earn without being actively involved. There are lots of ways of generating passive income, in fact, the world’s multi-millionaires rely heavily on passive income alone. Some of the most common ways are through business, investing in mutual funds, or renting out real estate.
Most importantly, invest on knowledge. The earlier you become aware of ways in making your money grow, the earlier you get to be financially independent. In the end, we are responsible for our own financial literacy since the resources are already out there.