Financial Planning for Millennials
Gen-Y Guide to Finding Financial Advice You Can Trust
Last Updated: April 6, 2016
According to a Fidelity Investments survey, nearly a quarter of Millennials trust no one for financial advice. As though that’s not disheartening enough, 39 percent of them worry at least once a week about their financial future. And with good reason. The average age of Generation Y is 30 years old, a pivotal time for setting in motion a financial plan for the future.
Unfortunately, without anyone to rely on for advice, many Millennials are uncertain about how best to budget, save, and invest toward their financial goals. If you have yet to find financial advice you can trust, try this.
Ask Your Parents For Financial Advice
One-third of Millennials say they trust their parents more than anyone else for financial advice. It’s not so much their expertise that Gen Y counts on (though that may certainly be the case), but their parents’ agenda: looking out for the best interests of their children.
Millennials tend to turn to their parents on the subject of finances because they know they have their best interests at heart. This combined with a lifetime of trial-and-error makes Gen Y parents a great go-to for advice on basic financial decisions, from managing credit cards to buying a home.
Read Books on Financial Advice
You don’t need an expensive or lengthy financial education to learn all you need to know about managing your money. The world’s foremost experts turned authors have got you covered. Once you start reading, you’ll find your own unique path to learning, but this list is a good place to start:
Rich Dad, Poor Dad by Robert Kiyosaki
The Wall Street Journal Guide to Starting Your Financial Life by Karen Blumenthal
Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner
The Money Book for the Young, Fabulous & Broke by Suze Orman
The Only Investment Guide You’ll Ever Need by Andrew Tobias
Your Money or Your Life by Vicki Robin
The Millionaire Next Door by Thomas Stanley and William Danko
A Random Walk Down Wall Street by Burton Malkiel
Buffett: The Making of an American Capitalist by Roger Lowenstein
The Essays of Warren Buffet by Warren Buffet
The Four Pillars of Investing by Dr. William Bernstein
The Bogleheads’ Guide to Investing by Larimore, Lindauer, & LeBoeuf
The Richest Man in Babylon by George Clason
Consult With a Financial Planner
If and when you want to take things to the next level, you may consider consulting with a financial planner. Should you do so, be sure to do your homework first.
When choosing a financial planner, be mindful of the following:
- What is their background, education, and employment history?
- Are they certified (as you only want to do business with a Certified Financial Planner)?
- Do they take the classes necessary to fulfill the continuing education requirement?
- Do they charge a flat rate (preferable to a commission-based fee)?
- Do they have impressive referrals?
No matter what anyone else advises, only you know what is right for your financial future.
Yes, you need to find people you can trust, be it your parents, expert authors, or a financial planner. But after gathering all the information you can on the subject, defer to yourself first and foremost when it comes time to make any financial decision.