Tuesday

Addressing Millennial Money Issues: How To Give This Generation Sound Financial Advice

Millennials learned to become savvy spenders. In Australia, people
born between 1981 to 1996 opted to delay buying houses, decreased their alcohol
and tobacco consumption, and spend their money on private health insurance and
public transport. They also chose not to own a credit card and saved regularly
compared to their parents.



Since most Australian millennials choose to be wise about their
spending, they usually look for ways to help them manage their finances
properly. But because of their busy schedules, finding time to sit down with a
financial advisor can get challenging. This situation should prompt financial
experts to look for more efficient ways to reach out to this generation and
offer financial services like retirement planning and wealth management. They
can also provide a credit score comparison to
establish a person’s finances. Here are several tips to allow financial
advisors to help millennials manage their money wisely.



Teach Them To Manage Substantial Student Debt



As of 2017, the average student debt in
Australia
reached $19,100. Those who availed the HELP
loan take almost nine years to pay off all their debts. For millennials getting
the average weekly earnings for full-time employees, paying off this amount can
be tough. Financial experts should help them address this problem by thinking
of viable ways to pay without compromising the other financial obligations.
They can also help millennials look into possible repayment plans that will
make it easier for them to pay all their debts gradually.



Conform With Millennial Lifestyle Decisions



Unlike the Gen Xers and the Baby Boomers, millennials do not like the idea of always hearing that they should only spend their money on investments. This generation loves to travel, get the latest gadgets, spend time with their loved ones, and enjoy life. But as a financial advisor, you still need to remind them to keep a feasible balance between spending and saving. Let them use a portion of their salary for breaks and occasional partying. Yet tell them to keep a hefty part of their money to save for their retirement and emergency expenses.



Learn To Communicate Digitally



As earlier mentioned, millennials usually have less time for sit-down appointments because of their very hectic schedule. Because of this, visiting them at work or asking them to meet you after office hours to talk about their credit score comparison could be a terrible idea.



If you want to speak to your millennial client about managing their
money, you need to do it digitally. Send emails once in a while or touch base
with them through messaging apps. Young people prefer to communicate online, so
take advantage of this technology to drive your message across. It will prevent
wasting both your time and resources if you do it this way. 



Offer Comprehensive Financial Services



Most millennials have limited financial education. It can get
addressed by providing them thorough guidance about managing their money aside
from giving them investment tips. Usually, this generation can manage to live
from payday to payday. It can be a problem when something big comes up like getting
married or having a new addition in the family. Millennials need to learn to
combine finances and save up to pay for a property for their future. Sharing your financial knowledge with a
millennial may be different compared to their older contemporaries. But like
any other thing, you need to adjust with the times. Try to keep up with the
millennial lifestyle so they can relate to your advice about their finances and
apply those in their lives.