{"id":865,"date":"2019-04-03T11:06:50","date_gmt":"2019-04-03T11:06:50","guid":{"rendered":"http:\/\/brendakearns.com\/blog\/?p=865"},"modified":"2019-04-03T11:06:52","modified_gmt":"2019-04-03T11:06:52","slug":"a-letter-to-millennials-i-have-a-few-suggestions","status":"publish","type":"post","link":"http:\/\/brendakearns.com\/blog\/archives\/865","title":{"rendered":"A Letter To Millennials: <\/br>I Have A Few Suggestions"},"content":{"rendered":"\n

I\u2019m surrounded by millennials\u2014my four oldest kids (and their partners) were all born between 1982 and 2000. I\u2019ve also done a bit of research, so I have a lot<\/em> of opinions. I\u2019m good at having opinions. Just ask my kids. <\/p>\n\n\n\n

Okay, so here (in my<\/em> opinion) is why you\u2019re having financial problems\u2014and how I think you can fix those problems:<\/p>\n\n\n\n\n\n\n\n

*Everyone (and by everyone<\/em>, I mean my generation\u2014the baby boomers) pushed you to go to college or university. And you did\u2014millennials are now the most educated generation in history. Sadly, the cost of post-secondary education has quadrupled in the last 30 years, so the average millennial now graduates with $33,000 in student loans (and 66% of you have other debts\u2014like bank loans and credit cards\u2014that you\u2019re trying to pay off, as well). <\/p>\n\n\n\n

*Thanks to that art history degree, you have a great job, now, right? No? Well, you\u2019re not alone. Minimum wage jobs, part-time jobs, one-year contracts\u2026today\u2019s sluggish economy means even Ph.D.s can be found stocking shelves and cleaning out deep fryers.<\/p>\n\n\n\n

*Want to buy a house and raise a family? At least 90% of millennials do, but low-paying jobs, your current debt load and the banks\u2019 tighter lending standards mean that 48% of you are living paycheck to paycheck and just can\u2019t see a way to make that dream a reality. <\/p>\n\n\n\n

*Want someone to talk to about your problems? Good luck with that. Since 1985, the number of young adults with no one to confide in face-to-face has tripled. Despite lots of social media contacts, millennials have fewer real<\/em> friends than earlier generations did.<\/p>\n\n\n\n

To sum up: <\/strong>You\u2019ve got massive debt, no job security, can\u2019t fathom how you\u2019ll ever buy a house or take time off to raise kids, you\u2019re feeling isolated, and my generation is bashing you for the mess they claim you\u2019ve<\/em> created. And they\u2019re making fun of your avocado toast, which is actually quite tasty.<\/p>\n\n\n\n

Sorry. I know\u2014sometimes we\u2019re assholes.<\/p>\n\n\n\n

A quick word about your critics:<\/strong><\/p>\n\n\n\n

The average baby boomer has $107,000 in debt, and is carrying three times more credit card debt than you are. Nearly 33% of baby boomers have no<\/em> money saved for their retirement, plus they\u2019re still paying off mortgages. Keep in mind that these people have already burned through half a century of their prime earning years. They\u2019re pretty hard on you<\/em>, but they\u2019ve done a crap job of managing their own finances. <\/p>\n\n\n\n

You\u2019ve heard the phrase \u201cPeople who live in glass houses shouldn\u2019t throw stones?\u201d Nuff said.<\/p>\n\n\n\n

The good news:<\/strong><\/p>\n\n\n\n

If I had been handed the economic mess that you\u2019re facing, I\u2019d throw myself on the floor and have a tantrum because, well, the world isn\u2019t fair and I\u2019m a drama queen. Not you: <\/p>\n\n\n\n

*You\u2019re budgeting. <\/strong>At least 34% of millennials already have a written financial plan, and 57% of you review and update those plans annually (only 27% of boomers can say the same thing). <\/p>\n\n\n\n

*You\u2019re adapting.<\/strong> The average new car costs $30,000 and sits in a parking spot for 23 hours every day. So millennials are buying used cars\u2014or no car at all. They\u2019re walking, biking, bussing, and getting into car-share programs like Zipcar.<\/p>\n\n\n\n

*You\u2019re sharing. <\/strong>Speaking of Zipcar, millennials are the reason the whole \u201csharing economy\u201d is gaining such momentum\u2014you\u2019re using public bike-sharing systems, sharing accommodation through sites like Airbnb, and sharing clothing by hitting thrift shops or using websites like thredUP. <\/p>\n\n\n\n

*You\u2019re penny pinching.<\/strong> At least 60% of you skip name brands and grab the generics, instead\u2014and 94% of you save money by using coupons. <\/p>\n\n\n\n

So, what else can you do?<\/strong><\/p>\n\n\n\n

  1. You\u2019re already paying off your debt\u2014pay more<\/strong><\/li><\/ol>\n\n\n\n

    Alright, be honest with yourself. Take a look at this Charles Schwab survey:<\/p>\n\n\n\n

    \"\"

    *Image source <\/a><\/figcaption><\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Now, you know there\u2019s a difference between happiness and contentment, right? Happiness is the short-lived \u201chigh\u201d that you get when something good happens (and that disappears the instant something bad happens). Contentment is a longer-lasting, deeper feeling\u2014a sense of gratitude and appreciation for your life. <\/p>\n\n\n\n

    Got it? Okay, good. Now, take another look at that spending chart. Could you be just as content if you were drinking a $2 coffee each day? Could you be just as content if you wore clothes and used phones and electronics for longer before replacing them? Could you be just as content if you went to fewer live events and ate at home more often? <\/p>\n\n\n\n

    Good. Now you can pay off your debt more quickly. And you can learn how to brew your own coffee.<\/p>\n\n\n\n

    2. You\u2019re already saving\u2014save more<\/strong><\/p>\n\n\n\n

    Embrace saving as a lifestyle choice. This will be the most significant decision that you make (after paying off those debts). Prioritizing saving will encourage you to find even more<\/em> ways to live comfortably\u2014and to be perfectly content\u2014with less.<\/p>\n\n\n\n

    Baby boomers are not<\/em> good role models for this, I realize, but there are lots of others out there who are:<\/p>\n\n\n\n

    People living in Sweden, Switzerland, Germany, Belgium, France and China save, on average, at least 10% of their annual income every year. <\/p>\n\n\n\n

    Closer to home, there\u2019s the Silent Generation (people born in the mid-1920s through the early 1940s\u2014during the Great Depression and World War II). They worked hard at whatever job they could find, made possessions last as long as possible and saved every spare penny\u2014and it paid off. They ended up being the wealthiest generation ever\u2014and, ultimately, they drove much of the post-World War II economic boom.<\/p>\n\n\n\n

    Money isn\u2019t happiness, but it is<\/em> security\u2014if you make saving a priority, then temporary setbacks (like a sudden job loss) won\u2019t bankrupt you.<\/p>\n\n\n\n

    3. You\u2019re already sharing\u2014share more<\/strong><\/p>\n\n\n\n

    Bikes, cars, public transit, thrift shops\u2026you\u2019re finding a lot of ways to get what you need\u2014and to get where you need to go\u2014without spending a ton of money. <\/p>\n\n\n\n

    But you can\u2019t afford to buy a home and<\/em> have a family, right? Are you sure? The obvious suggestion would be to buy something far smaller and cheaper than your parents did\u2014and to look into alternative child care arrangements, like nanny shares. Those are great ideas, but there are other options, too:<\/p>\n\n\n\n

    Millennials are now part of a new housing trend\u2014shared housing. In the last 20 years, there\u2019s been a 37% increase in the number of people sharing households\u2014along with chores, meal prep, living expenses and, yes, even childcare. Many of these people are creating multigenerational homes. In some Canadian communities\u2014like Brampton, Markham and Scarborough, Ontario, and Surrey, B.C.\u201420% of residents now live in multigenerational homes. <\/p>\n\n\n\n

    And relatives and friends aren\u2019t your only options for shared housing. There are over 1,500 cohousing communities across the U.S., 35 in Canada and over 700 in Denmark and Sweden. Specialized options are even popping up\u2014CoAbode helps single moms wanting to live and raise their kids together in the U.S.<\/p>\n\n\n\n

    Look, you\u2019re an educated, adaptable, inventive generation\u2014and you\u2019re the largest generation alive right now, so you have the power to make change (for yourself, and for others). <\/p>\n\n\n\n

    Challenge yourself to spend as little as possible so you can prioritize debt repayment and savings. Use contentment as your guide so you can wean out unnecessary expenses. Use that wild imagination of yours to find ways to share resources\u2014including housing and daycare\u2014so you can support each other and succeed at your biggest life goals.<\/p>\n\n\n\n

    Financially, you got a raw deal when you graduated\u2014but you can<\/em> turn this around. And you can make your own damned coffee.<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    I\u2019m surrounded by millennials\u2014my four oldest kids (and their partners) were all born between 1982 and 2000. I\u2019ve also done a bit of research, so I have a lot of opinions. I\u2019m good at having opinions. Just ask my kids.  Okay, so here (in my opinion) is why you\u2019re having financial problems\u2014and how I think […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"","footnotes":""},"categories":[1],"tags":[12],"class_list":["post-865","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-millennials"],"_links":{"self":[{"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/posts\/865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/comments?post=865"}],"version-history":[{"count":20,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/posts\/865\/revisions"}],"predecessor-version":[{"id":888,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/posts\/865\/revisions\/888"}],"wp:attachment":[{"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/media?parent=865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/categories?post=865"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/brendakearns.com\/blog\/wp-json\/wp\/v2\/tags?post=865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}