by Caitlin Combest on Oct 5, 2017
Saving is hard. Saving takes effort and planning. Yes, these statements are true, but they are just as much true as they are false. We can make saving as easy or hard as we want. So the question here is, how do we make it as easy as possible and more specifically, how do we stress the importance of savvy saving to millennials?
Step #1: Put yourself in their shoes
Step #2: Make saving look attractive
Step #3: Discuss a monthly budget
Step #4: Introduce college education funding early
Step #5: Discuss a safe amount for emergencies
Put yourself in the shoes of a millennial. Times are not what they used to be, that is for sure. Take the smart phone for example. About ten years ago, we were introduced to the first generation of the iPhone. Little did we know that the iPhone 7+ would be a thing. Pretty much everyone has a smart phone these days (which are not cheap) and less and less flip phones and landlines are being used. The iPhone is just one example of what many millennials would consider a necessity. Understanding how time and purchases are changing can really make a difference when talking to the younger generation about saving.
Paint a pretty picture of saving. Saving can ensure comfortable living, less stress, and a better understanding of the economy among other things. When talking to this person make sure to discuss their individual goals. Having a clear picture of what goals they would like to reach will more than likely leave saving at the forefront of their mind.
Sit down and talk budgeting. If you are feeling really into it you can even make a spread sheet! Making time to explain how to make a simple monthly budget can really make a difference, and it won’t take up too much time. Get this person thinking about how much money they will need to get by plus an amount that would be acceptable for things such as a night at the movies or a shopping trip. Come up with an estimate and they can adjust as needed.
College is something every family thinks about, and more specifically, how they will pay for it. The earlier you and your child can talk about the reality of college funding the better. College creeps up fast and before you know it you are paying for $200 books, a long list of fees, and much more. Planning ahead can allow you to feel more confident about what is to come and how much you and/or your child should save now.
Once you have discussed the steps above, make sure to stress the importance of having a safe and secure amount to put away for emergencies. Life happens and it is nice to have a sort of “piggy bank” around when you are in a bind. When discussing a monthly budget come up with a portion of funds to hold back. If you take out the same small amount every month it can really help and really start to add up!
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