Financial Literacy For Millennials

We are at a time when millennials are mostly in their twenties or thirties. Some of them are probably at the beginning of launching their career, while others have already started working. However, one thing is common among them — lack of financial literacy. Schools do not teach us about taxes, savings, or even the basics of finances. It is a shame that tech-savvy millennials should lag behind due to their ignorance about finances. If you are one of them, here are some useful and important tips for you right from the mouths of experts:

Make a List Of Your Expenses

Since you have already started earning, you probably have a number of expenses every month whether that includes your needs or wants. Make a list of all your expenses first. Even if you don’t have a proper job yet, and you are studying with a part-time job, it is imperative for you to take note of every dollar that leaves your wallet. There will be certain expenses that you have to pay monthly — for example, your house rent, phone bill, Internet bill, and then there will be some daily expenses as well. If need be, take help from your parents to make this list. After all, they have some experience in finances.

Learn About Credit Score

Building a good credit score from a young age is extremely important for millennials, especially for those who are planning to start their own business when they can. They will definitely need a loan to start it. Millennials should learn how to read a credit report, keep track of their personal credit history, and do everything they can to maintain a good credit score.

Find Out How To Have Passive Income

It is weird that the main purpose of education is to give us a job so that we can earn money, yet the school syllabus does not teach us how to make money in various ways in order to increase our income. Having a passive income is a great way to earn extra money, and finally retire long before you are old and gain complete financial freedom. Learn about various kinds of investments, ranging from mutual funds to real estates that can give you a steady income every month apart from your own earnings from a regular job.

Seek A Mentor

It is not easy to figure out everything by yourself. The best practice is to find a mentor who has sound knowledge about personal finances and investments — someone who will not just guide you but will teach you the basics of personal finances. It could be your parents, a close friend, someone from work, or even your university professor. Talk to people and learn how they handle their finances. It will give you an idea as to who is doing it best. Once you know that, ask that person to help you sort your own finances or at least point you to the right direction in case of any financial dilemma. Make sure that when the time comes, you do the same for someone else!

Take A Basic Course In Finance

Remember, we are talking about millennials here who love technology. Taking online courses for just about anything is the new fad. Find out a course that will answer all your questions and teach you how to grow your wealth and manage your money better. An online course means you can always do it at your own leisure and from your own home. Often these courses are the best bet for getting updated knowledge on money saving tactics. They are quite cheap, too, and you will always have a fun environment where you can learn with people of your age.

Start Saving As Early as Possible

It is never too early to save, right? In fact, starting early has its pros. In case of mutual funds, time matters a lot, and the earlier you start the better. Even if your monthly saving is meager, you should start. There are tons of apps and startups that help people with personal finances for almost free. Take help from technology, and get going. Don’t be afraid to make mistakes! Remember, you are still young and in your learning phase; even if you lose a few bucks, it is fine! Consider it as a lesson.

Once you an idea about your money, think of the whole picture. Finances mean expenses, assets, income, and liabilities. Manage each of these using various and readily accessible tools and apps available online. Just like bigger companies track all of these, you should, too. You will realize that once you know where your money is going, it will make a lot of sense. Plus, it’ll make money-managing easier.