Help Center
For Gen Z and Millennials, the lack of budgeting has left them feeling anxious about their financial goals. According to a 2020 NerdWallet study, 83% of Gen Zers and Millennials have experienced regret about their spending decisions.
Even though budgeting may seem daunting at first, with the help of a financial planner, Gen Zers and Millennials can create a budget that enables them to achieve their financial goals.
To help get Gen Zers and Millennials feeling confident about budgeting, here are four tips to consider while creating a budget:
- Choose your words
- Understand values
- Practice makes perfect!
- Find an outline
Choose Words Carefully
To some, the word budget can be intimidating. For many young adults, the thought of budgeting leaves them feeling like they are cutting out the things that make them excited for life. A better way to look at it is that you are navigating spending to accomplish your goals. So don’t use the word “budget” if it bugs you. Call it something else that gets you excited.
Understand Values
When creating a budget, prioritize items that are critical and non-negotiables. Having a “why” to your spending helps make decisions easier. For example, a dress or other article of clothing might be useful once, but can sometimes be an expensive purchase if you are not going to use it many times. Consider a less expensive option, or one of the online tools that allows you to rent expensive clothing for fancy events. Food can be both healthy and inexpensive. It just takes a little effort. Many millennials and generation Z value experiences more than tangible goods, so save for time off. Set yourself up with goals that are in alignment with your values.
Practice Makes Perfect
Just because you have a budget does not mean you will achieve their goals right away. It takes time to optimize finances, so don’t give up when it does not go as planned at first. Make sure to learn from your mistakes. Get back on the wagon after you fall off. It is important to keep moving forward.
Find an Outline
There are many budgeting tools out there. Find one that works best for you and be willing to adjust it as time goes on. Here is a link to the budget form we use at A&I Wealth Management.
In Conclusion
Budgeting is a survival skill in the modern world. For young people like millennials and generation Z, spending is even more dangerous because things are so much more expensive than they were before! So choose your words carefully to help prime your mind for success. Keep practicing and be kind to yourself when you make a mistake. Find an outline, or a tool, like the one we use here at A&I Wealth Management. To learn more about financial planning for millennials and generation Z, keep reading.
