Millennials, the much maligned group of adults these days, have their fair share of successes. Most technology start ups would not have become anything if it were not for millennials. While most would say that those between the ages 18 to 34 and employed are earning more, a recent survey says they are spending so much on coffee.
According to an Inquirer report, the survey of close to 2,000 individuals shows that they spend much more on coffee than saving or investing their money.
Millenials And Their Lack Of Financial Literacy
The survey, according to the report, was done in conjunction with an investment app. It took a closer look at the spending habits of millennials. Of those surveyed, 44 per cent of the females in the group spent more on their cappuccinos and lattes, than investing. The males who participated only showed about 34 per cent who have the same inclination. On the average, 41 per cent of the 1,900 surveyed showed the same spending habit. It also demonstrated the generation’s love for novelty coffee drinks served by big name coffee chains.
Although the survey was done early 2017, it still rings true to this day. Another article in Forbes talks about the common “money mistakes” millennials make, stemming from their lack of financial literacy. According to another survey by the National Endowment for Financial Education and George Washington University, only 24 per cent of 5,500 individuals had a “basic understanding of how to manage their money.”
How To Fix Common Money Mistakes
The Forbes report spoke to another millennial who is now working in the field of financial education. According to Rohan Thakkar of Orca Financial, those who are earning now must set a 50%-20%-30% rule. Fifty per cent goes to spending for your needs, 20 per cent goes to investing, and 30 per cent to saving for a rainy day.
One also needs to track spending, so as to determine areas where one is spending too much (like having coffee at Starbucks). Learning about investing one’s hard earned money is also a must. There are several online sources for this, if you are not yet ready to talk to a financial advisor. Finally, all of this should be guided by a set of concrete financial goals which one sets and sticks to.