Nobody wants to be preached to, but that’s what Millennials feel Boomers do far too often to them – especially about money. And they really wish they’d be quiet already. Here are 12 money rules young people want Boomers to stop talking to them about.
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Social Security Will Be There
Social Security? What’s that? That’s the mindset of many younger people today.
If they know what it is, they absolutely do NOT believe there will be a social safety net there for them when they are ready to retire. With fewer workers working to pay for the retirement of an ever-increasing number of Boomers, there’s just not enough money to go around.
Instead, Millennials are taking the responsibility on themselves to save for retirement. And hey, if there’s anything leftover for them when they retire, great. But it’s just gravy, it’s not dinner.
Stop Being Lazy
Laziness is a common trope boomers use against millennials. Boomers equate it with having money struggles or an unwillingness to put themselves forward.
That’s typically not the case. Many millennials have side hustles and pursue entrepreneurship. That’s not being lazy. It’s just a different way to grow one’s wealth, not to mention trying to make ends meet.
Mutual Funds Are Your Friend
Mutual funds were wildly popular for boomers. It helped them grow their wealth. However, they’re not the only option available today.
There are often cheaper alternatives that allow younger people to have more of their money work for them. Furthermore, mutual funds often have higher minimum investment requirements, making it harder for more to start investing.
Avoid Credit Cards
Credit cards are a two-edged sword. They can lead you into debt, but they also provide a lot of benefits. Boomers want you to know that paying in cash is best.
It’s not, especially if you need a good credit score and can manage your spending. Not to mention that rewards credit cards are a fantastic tool to earn cash back or free travel.
Buying a House Is the Only Option
Homeownership can be a great way to establish yourself, but boomers believe you have to buy a house to get anywhere in this world.
Millennials are often wise to ignore this advice. Given rising home prices and interest rates, it may not be a wise move.
Additionally, millennials may not want to be tied down to one location. That’s not something homeownership typically affords to you.
Renting Is Throwing Your Money Away
Boomers will often say that if you rent, you’re just paying someone else’s mortgage. While technically true, why should that really matter? It doesn’t really mean people are throwing their money away.
We live in a different climate today than we did decades ago. If you can’t afford to purchase a house or want location freedom, renting is often not a waste.
Don’t Talk About Salary
For many boomers, it is uncomfortable to talk about salary. It’s a part of an overall unease in talking about money.
Millennials largely choose to ignore that direction. Information is power, and discussing salary can help people at various stages. A rising tide lifts all boats, and that’s the case here.
Keep Your Money Safe
Boomers are often the children of people who lived through the Great Depression. It stands to reason they are going to be more risk-averse and opt for saving too much money in a savings account.
Thanks to technology, the barrier to entry for many investments for millennials and others is low. Beyond having an emergency fund in a high-yield savings account like CIT Bank, it’s best to look to other investments to grow your wealth.
There’s Only One Way to Manage Your Money
Who loves being given an “It’s my way or the highway” approach? Millennials are no different, so it’s understandable why they might bristle when boomers tell them there’s only one way to manage their money.
There’s no one set way to manage your finances. It’s personal finance for a reason. As long as millennials are happy and reaching their financial goals, that’s what matters.
Stay In Your Job
Boomers come from an era where you worked for one employer. You retired to a party where you received a gold watch.
Times have changed. Switching jobs isn’t as problematic to one’s career. Beyond moving up, millennials understandably want to be fulfilled in their job.
You Need a College Degree to Get a Good Job
Going to college can be a good thing. It’s also an expensive way to discover yourself. Boomers come from a time where going to college became an expectation and, in part, helped lead to the current student loan problems.
Millennials are dealing with a challenging job market, growing costs, and other struggles. It’s understandable to be apprehensive.
There’s nothing wrong with pursuing a trade or another field that only requires licenses and not a degree. Better yet, some of the fields can be quite well.
Combine Your Finances When You Marry
Boomers come from a time when it was common to merge your finances when you marry. It’s something I often support.
However, it overlooks one major problem. Reports show that 98 percent of domestic abuse also includes financial abuse. Furthermore, nearly 40 percent of couples experience financial unfaithfulness.
It’s easy to see why millennials would feel cautious about plunging into combining finances.
Boomers Are Pushing Millennials to the Brink
Generations often disagree. That’s especially the case between Boomers and Millennials. Here are 22 ways Boomers are pushing Millennials too far.
Things Boomers Did as Kids That Make No Sense Today
All generations have differences, but some things Boomers did as kids make little sense. Here are 11 of the most mind-boggling.
12 Stereotypes About Boomers That Are Actually True
Retail workers see everything, especially when it comes from one kind of individual. Here are 12 stereotypes about boomers retail workers say are true.
Things Boomers Need to Stop Saying About Money
Boomers have had decades of experience with money. It doesn’t mean everything they practiced financially still applies today. Here are 13 things Boomers need to stop saying to Millennials about money.
Things Boomers Must Let Go Of
Boomers like to live in the past, but some things take the cake. Here are 13 things Boomers need to let die, like the rotary phone.
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.