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Are You a Millennial and if So What about Financial Planning

Millennial Financial Planning

If you are wondering if you fit into the millennial category then all you have to do is know your age as this applies to those adults that are between the ages of 20 and in their early 30s.   It has been indicated that for this millennial group of people that they really need to look at a new way of investing or for planning their finances.

The concept is that financial planning for the millennial’s is quite a bit different than what it was for the baby boomers.    What is being discovered is that the type of planning that the baby boomers did is not being effective enough.   Meaning they are trying to help their children that who are in adulthood now and have financial needs that they are not able to handle themselves.

What ends up happening is the younger generation is frustrated and is at loggerheads with their parents over their financial situation.   One of the sources of frustration is that the baby boomers are trying to give financial advice to the younger generation that just is not applicable anymore which they don’t realize but the millennial group does.

The baby boomers want to ensure that their children are intent on owning assets which usually means they have to take a lifetime to pay for these. The younger millennials have a different perspective where they feel that it is better to borrow or rent rather than invest a lot of long-term money in owning assets.

Financial planners are still focusing on the main priorities which is making sure that debt repayment is the number one focus and that individuals live within their means according to their finances at the time.   Priority is being put on to savings each month as much as possible.   The new millennials tend to go more towards goal setting which includes these priorities.   What is the general consensus is that now it takes a lot longer for the young adults to progress financially compared to what their parents did.    This adds to the frustration that they are feeling when it comes to money issues between them and their parents.

It would appear that some common ground is going to have to be met on both sides to produce some tranquility amongst the families when it comes to finances.

 

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Sam Seidman, CPA, CA, LPA
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Toronto, Ontario
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Email: sam@torontoaccountant.ca

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