This age demographic is financially illiterate and many are suffering from student loans and credit card debt. The irony is that starting an investment nest egg has never been easier or cheaper. The financially illiterate suffer from the ceiling of complexity. They don’t know what to do, they don’t know how to invest and are afraid to make mistakes. Their peers are in the same boat and thus one must act like a lone wolf to bust beyond the cyclone of instant gratification. Texting, social media, being connected and fitting in are the unspoken rules of this generation. It won’t be until this group starts getting married and having kids that they will wake up from this era of financial irresponsibility.
This dire situation is not without a glimmer of hope. Life expectancies have been increasing by 30% a decade for the last 100 years. Even the late bloomers can start investing and accumulate a decent nest egg. The sad thing is that this cycle repeats generation after generation. It’s time to change the model and start kids and their parents saving at birth. Investing one dollar a day from birth will change anyone’s life.
It’s never too late to be introduced to the concepts of Munny Journey. The answer to millennials saving for retirement, or just in general, is that they need to learn why it’s important.