Millennials face high levels of debt, which may be one reason behind their interest in finance, saving, budgeting, and financial planning. Pinterest identified weekly savings planners as one of their most popular searches for 2018. Searches for “52-week savings plans” surged 295%.
Millennials carry a large amount of student loan debt. This may prevent them from feeling confident enough in their finances to buy a home, get married, or start a family. Here are a few ways to help reduce the burden:
- Investigate the two main income-driven repayment plans, REPAYE and PAYE. Both plans allow those with student loans to dedicate just 10% of their discretionary income to their student loan debt.
- Some teachers and nurses could get state-sponsored loan forgiveness.
- Minnesota, New York, Connecticut, Kansas, and Nebraska are working on tax incentives that would attract recent college graduates and millennials with student loan debt.
- While paying off debt is important, it’s also crucial to invest money for the future. Non-traditional opportunities for investing like peer to peer lending and purchasing a portion of a song’s royalties have sparked the interest of many millennials.
- The most important part of financial management is budgeting. Millennials may be prone to thinking that their peers are better off, which could lead to overspending.
