When you think of Millennials and money, do you imagine they are financially savvy or reckless? The truth is that, according to the Army and Navy Academy, Millennials face many financial problems that give them a bad name. Bold TV sat down to chat with an expert to figure out if Millennials are better or worse than people claim. Karen Williams, or “The Dividend Diva,” is a coach that helps people create financial plans unique to their personal goals. While she focuses on helping communities of color, she helps anyone who comes her way, including the younger generations. She says that while Millennials treat money differently from their parents, they’re doing a great job at managing their budgets.
Learning money management from parents
Many times, people handle their finances according to how they grew up. The majority of young people today had childhoods where their parents struggled with money. They saw national crises in housing and the economy. They saw adults struggle with credit card debt and employment. This environment could have affected Millennials in a few different ways. Did they learn how not to handle finances or did they follow a negative example? Mostly the former. Williams says that Millennials are handling their money well. And one way they’re getting ahead is becoming financially literate earlier than their parents did.
Key advice for financially fit Millennials
What essential money management advice does The Dividend Diva have for young generations? First, Williams’ main tip is to pay your bills on time. Thirty-five percent of your credit score is based on the timeliness of payments. Prioritize this, and you will protect your credit score! Second, use your free time wisely. The quarantine of 2020 was not ideal but offered an opportunity to learn. Many Millennials used their time at home to learn about the stock market and investment apps. And many also took advantage of Zoom workshops on financial literacy. Check out the video to hear Williams’ suggestions for investment tools.
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