Millennials Feeling Economic Pressure from the Pandemic
Millennials are feeling the financial pressure of the pandemic economy even more than other generations. Here are some simple ways to start building your financial security.
Life stage retirement planning series
Millennials are feeling the pressure of the pandemic, and they’re facing an uphill battle when it comes to retirement savings. Although the road has been rocky, millennials have the power to take control and strengthen their financial security going forward.
The Uphill Climb for Millennials
This generation entered a tough job market during the Great Recession and now they’re faced with another economic downturn — all while managing unprecedented levels of student debt. Many millennials were struggling financially before the pandemic hit and now, they’re feeling the effects of job losses and other financial setbacks.
According to a survey by Morning Consult, millennials are the generation hardest hit financially by the pandemic. Thirty-nine percent of millennials say the pandemic has had a major impact on their finances, compared to 35% of Gen Z, 29% of Gen X and 17% of baby boomers.
Building a Strong Financial Future
Millennials are resourceful and resilient, especially when it comes to using technology and thinking outside the box to find solutions. The key is to use those strengths to your advantage to build a more financially secure future. Here are some steps to help you move forward with confidence:
Seek out opportunities. The pandemic has dramatically changed the job market and the demand for certain industries and job roles. Invest in yourself by taking courses or certification programs — or use an online learning platform like Skillshare.com to hone your skills. Focus on networking and keep an open mind for opportunities outside of your field of expertise.
Save for emergencies. Even if you don’t have a lot to save, small amounts can add up over time. Begin with an emergency fund — aim to save enough to cover three to six months of expenses. This will give you peace of mind in an uncertain economy. Set up automatic transfers into your savings account each month to keep your savings growing.
Deal with debt. It can be hard to get ahead financially when you’re paying high interest rates on credit cards. Try to pay more than the minimum on your credit cards so you can reduce your credit card balances over time. If you’re having trouble making payments on your student loans, mortgage or other loans, consider options for refinancing or consolidating your debt.
Don’t miss out on retirement savings. Even if you’re working on building an emergency fund or paying off high-interest debt, it still makes sense to contribute to a retirement account — especially if your employer offers a match. Aim to contribute up to the amount needed to get the match, and try adding 1% every year after that.
Invest with confidence. Millennials who have experienced the wild ride of the stock market may be wary of investing. However, choosing not to invest may lead to missed opportunities for growth. An investment professional at Amegy Bank can help you select investments that are appropriate for you and provide guidance on building a portfolio that matches your goals and investing timeframe.
Protect your financial future. Disability insurance and life insurance may give you and your family a safety net if something were to happen to you. Talk to your employer to see if they offer short- and long-term disability insurance. Life insurance can also often be purchased through your employer or a private insurance company.
Helping You Get There