Money Mistakes to Avoid As we consider millennials, it is an urban myth to think that they, the most well-educated generation, today, have not exercised their skill sets to become proficient with saving their very hard-earned incomes. Although they are, statistically, the largest work force in the United States, or were, before the pandemic, they have had to endure the most sluggish, almost flat, economic growth of any previous generation.
Generation Z, on the other hand, all 70 million of them, representing birth years 1996 – 2009, were also impacted by the world they were born into, with its unpredictability, and staggering highs and lows, economically and socially. As of 2020, many Gen Z’s are graduating college, and entering the work force with high expectations for a uniquely happy life. Their use of at least five techy devices, exceeds that of older generations, and, like millennials, they are highly motivated by social media sites, and influencers, who showcase numerous life-events, including marriage. Money Mistakes to Avoid The marriage ceremony being one critical aspect often featured in social media extravaganzas, in an atmosphere of perfection; often omitting the “bottom line” costs, and economic impact that accompany these activities.
The Cost of a Recognized Union – Millennials’ Insta-Magic-Moment Marriage
No generation achieves perfection in all aspects of life. According to Credit Karma, Millennials had spent more for that special event then any other generation, often going into debt, and spending upwards of $20,000-$50,000, depending on the size, venue, location, and number of attendees. A multitude of these couples were impressed with the Instagram Weddings, and wedding stories portrayed online, along with being bombarded by Facebook, YouTube, and peer influencers, sharing, and showcasing the perfection of what the ceremony should ultimately entail. Who would not want to personalize their day with Pinterest-perfect selfies displaying:
- Incredible vistas and Exotic locals
- Personally, designed wedding rings
- A chapel which closely resembles a castle
- Gourmet feasts
- A few hundred of their closest family and friends
These tech savvy generations frequently feel compelled to capture the magic of those moments for themselves, with epic memories, incurring staggering debt. The aftershock of spending thousands of dollars, often borrowed, was that they accumulated credit card debt that could not be paid in full, monthly. Saving for a home became nearly impossible, and retirement savings, or emergency funds were limited. Financial insecurity, and the lack of a mutually agreed upon, workable plan, for his and her spending and savings goals, often led to unhappiness, frustration, and hopelessness.
Even before the pandemic, millennials, and Gen Zer’s were becoming aware that exorbitant spending for epic marriage celebrations was a huge mistake. The financial impact of these occasions was catastrophic for any couple’s sound financial plan. Small and intimate destination, or pop-up weddings were found to be more do-able, less stressful, and much more affordable.
The Aha Moments – Post Wedding Money Mistakes to Avoid
To create cohesive financial plans, avoid costly mistakes, and initiate ongoing, mutual communication to tweak savings goals, investments, and a future of sustainable financial security, millennials, and Gen Z now:
- Squandering money: Mutually create a budget that both stick with, having a goal of accumulating wealth.
- Being Unprepared: Devise a plan for emergencies of all kinds, and get the proper reliable insurance for Health, Liability, and Auto insurance to acquire perks like the multi-car and bundling discounts. Check out Freeway Insurance Reviews for great coverage at affordable prices. Beyond saving money by bundling, you can also ensure that all loved ones have roadside assistance and are never stranded.
- Not Having a Financial Roadmap: Review the budget, frequently, then as incomes grows, put extra funds into solid investments that have substantial gains over time.
- Procrastination: Make a retirement fund a priority, automatically deducting an amount from each paycheck through an IRA or 401K. Retirement can come as soon as age 50.
- Escalating Debt via Interest Bearing Cards: Get a “zero interest” credit card, but use it infrequently and wisely.
- An Empty Nest Egg: Put as much into a 401K as an employer allows, then watch it soar.
- Failure by Default: Avoid defaulting on any student loans, make payments timely.
- Acting before Researching: Do the research before making purchases, to gain value, but not waste money
- A Safety Net: Have a set amount of discretionary income for you, and your spouse or partner. Never hide assets but allow each person to have an amount that is their own.
- Onward and Upward: Never leave current employer without a firm offer from someone else
- Not Preparing for the Thereafter: Have a Will or Living Trust drawn up by a lawyer to protect each other, and your heirs, when you are deceased.
Tracking your net worth, together, every month, and tweaking your financial plan, when necessary, keeps your budgeting goal success, and wealth accumulation, in focus, and the results of your efforts, at the forefront of your thoughts. Marriage is a priceless partnership that works for every generation, Millennial, Gen Z, and those to come, if you stay informed, and proactive with your financial goals, and long-term dreams.