IT’S A FIRST: WE’RE GOING TO BE POORER THAN OUR PARENTS
Sorry to be the bearer of bad news, but the statics don’t lie… young people today are the first generation that will grow up poorer than their parents, in an environment where cost of living will continue to rise. Essentially we are going to work harder just to pay the bills…
Yep, it is BLEAK. Oh, and just to hit the nail on the coffin, as our parents live longer (don’t get me wrong, this is obviously a good thing), we will have to wait that little longer for that inheritance. The sad thing is, with lower salaries and higher house prices inheritance will be more important to our generation than ever before. On average we’ll receive it in our 60’s… A bit late, and also very unfair if you don’t come from a wealthy family. Inequality will rise.
On the contrary, there are the tabloids criticising our spending habits, and blaming it on ourselves that we’re in this mess with the famous ‘don’t buy Avo on toast’, but if we don’t have simple littler perks, WE ARE GOING TO BE MISERABLE.
Let’s face it- we’re in a rut, and times are tough as living standards are changing. 20 years ago, it would be the norm to move out of your parent’s home and buy a place in your 20’s. Hearing this now seems like a very, very distant memory. More young people are living with their parents or in very expensive rented accommodation.
So, for all those out there that seem to think the millennial generation have got it easy, WE DON’T! But, it’s not all doom and gloom, we’re choosing to spend money differently, and I’d say, enjoying now, rather than in 10 years. We’re having the holidays of our lives before we need to save and settle down, we’re embracing new foods and cultures and living in (semi) high spirits with ambition and drive.
But, I hold my hands up, when it comes to money and saving, I don’t know where to begin. Here’s some saving tips I’ve stumbled across to help with trying NOT to be poorer than our parents:
- Credit Scores
Credit, what now? Only half of millennials have checked their credit rating, you can do it for free via Experian. I put my hands up, to this day, I’ve yet to do it. We all hear “having a good credit score is important”, but what can I do about it now, when I’m a student? Try simple direct debits- gym memberships, phone contracts? Even if you get a credit card, and just stick to paying petrol on it, and pay it off, of course, on time, then you’re making marathon steps.
Start to save properly. Not the “I keep a secret stash of cash under my bed for a rainy day” (AKA DRINK FUND). Only 1 in 3 millennials have enough money for an emergency. Enjoy life, but when you get that certified job, start saving a bit each month, and it will go a long way.
Now, I’m going to take my own advice, make a cup of tea and search to open up my first credit card (SCARY), and start some simple direct debits to get my credit rating rolling. FYI- try looking for cards that are interest free ?
If you’re looking for more tips on saving money, check out Money’s page of ’30 things to know about money before 30’.
Written by Cheyenne Chauhan, previous President of Aston Women in Business.