From early 401(k) plan withdrawals to not actively investing in stocks because that is for “old white people,” studies show Millennials rank near or at the bottom when it comes to financial savvy. Here are the top three Millennials’ money mistakes:
Millennials Money Mistake 1: Being All For The ‘Gram
Keeping up with the Joneses (or even the Kardashians) for the sake of Instagram can keep you in a world wind of purchases and outings you cannot afford. The continued pictures of you dining out, vacationing on a credit card, and costly “lituations”is an expensive lifestyle when you add it all up.
Yes, you can have fun, especially when you’re young. However, you’re not only losing valuable time, but if you find yourself spending more than you can afford, you will end up robbing Peter to pay Paul.
Just do the math—by time you have added up the cost of that lifestyle for even one year, you could have created your own “bank” by purchasing a new financial solution that offers a cash value via Index Funds. That way, you could vacation or even purchase a new car without putting your checking account and credit cards in the negative.
In this video, financial expert and advisor Robinne Alexander breaks down the other top two financial mistakes Millennials make.