Millennials: Where’s Our Money?

In 2007, during the beginning of the Great Recession, I was a self-employed millennial running my own PR firm full-time. I unexpectedly lost three of my largest accounts.

I had a sense that I needed to be going after more clients, increasing my revenue and saving up more money, but I was a young entrepreneur with a lot to learn about running a company. After all, I started the business fresh out of college because the job market was so bleak and I couldn’t land a position in my field or anything stable enough to carry me financially. The business had allowed me to cover all my bills and stash away a good deal of cash, but, when the recession hit, I became afraid. When I began the business three years earlier without any money, I didn’t even have enough to open a bank account. Now, here I was again with no more money and no one to ask for help.

Why didn’t I just go get a job? Well, it’s not that simple. Millennials came into the workforce hoping to lock down a secure career and bank on a big payday only to be disappointed that neither of those things were readily available. We watched our parents work for years at the same company and believe they had a nest egg for retirement that somehow disappeared. We make less money than previous generations and have smaller incomes and bigger debts because we’re often underemployed and underpaid.

So, we’ve figured out how to use technology to do more and spend less. We love discounts, deals and freebies. We’ve put off commitments like marriage and home ownership not because they don’t hold value to us but because we want to be stable enough to fully enjoy those experiences without major financial woes. We like money and appreciate the finer things, but live for a bargain. We did not want to follow in our parents’ footsteps so we started scrambling up extra money in addition to our full time jobs as side hustles (Pew Research).

This year, we’ll approach the 10-year anniversary of the Great Recession. It took a while but I’m doing pretty well now financially. However, I am concerned about my generation. As the oldest millennials turn 37 this year – an age where most Americans are supposed to be at their peak spending age – millennials are still feeling the aftermath of the Recession (Morgan Stanley).

 

We are the largest generation of the U.S. workforce and, as we age, many factors will bear down on our financial future: Social Security is underfunded, our life expectancy is on the rise and college debt won’t disappear. Many millennials, especially those who are entrepreneurial, don’t always learn things we should about money or by the time we do we’ve already been cast out into the world burdened by money mistakes and financial mess-ups. We are a considerably underfinanced generation, which is why we have no choice but to start saving as much as possible, living on significantly less and seeking financial advice.

Where is our money? How can millennials drive growth to the U.S. economy? What will predictions say about our financial contributions? How can we develop a sustainable plan for future generations?

We have to get to saving. Twenty-three percent of younger millennials (18–24) don’t have a savings account and 43 percent of millennials who make $75–$100k a year don’t have a savings account or have nothing saved. If we don’t save today, we’ll be playing catch up later. (Millennial Money)

We have to remain frugal. Millennials should have a vision for where we might want to be financially. We must plan for our finances to keep us comfortable and learn to live below our means. Develop a budget and set money goals accordingly – translation: buy a few less lattes.

We have to ask for help. As resourceful as we are and as much as we value relationships, we shouldn’t have a problem getting money advice and financial guidance to manage the things we value most. The earlier we enlist help, the better off we’ll be.

Contrary to what is said or perceived, millennials are not lazy, entitled slackers. We have the same needs and wants as older generations — financial security, family stability and retirement savings. As we plan for the future, we must consider the kind of commitments, goals and investments we will set with our money. We know how to use our profit—what we gain out of life—to supply our purpose in the world because we inherently understand that profit is not just about money. Profit includes your time, life takeaways, raw talents and trusted tangibles. And, millennials are going to need all of those to build a sturdy foundation for the future of our money.

This article is an excerpt from my book, The Original Millennial and appeared in The Tennessean for 12th and Broad as part of the Millennial Money Experiment powered by Regions Bank.

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Introducing the Launch of The Original Millennial

Slackers, narcissists, entitled — the infamous cliché known of a generation born around 1980 or so. This special breed of individuals, debunking myths and assumptions, will lead a cultural shift to represent a full 75 percent of the U.S. workforce by the year 2025 and change the face of leadership.

They are creative, innovative, enterprising, influential, bold, unapologetic, and ready to solve the world’s problems.

They are called the original millennial.

Last month, I announced the launch of my newest project – The Original Millennial – during my keynote speech before 250 attendees at the Memphis Urban League Young Professionals Empowerment Conference.

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This is an eBook project that will begin funding a social venture to support startups run by women and minorities who own businesses in the public relations marketing, media and digital industries.

The Original Millennial, a thought leadership series featuring the stories and experiences of millennial entrepreneurs, is the first of many projects that will fund this social venture effort. For $5.99, you may pre-order the eBook with exclusive content including interviews and videos for early release later this year.

The millennial generation is bigger and more diverse than any other generation has ever been. Most of us original millennials born in the early 1980s went through college only to find ourselves dissatisfied with our jobs, hopping from job to job more frequently than our parents, grandparents and even older siblings, or employed in fields unrelated to our area of study. We became more likely to start our own businesses or entrepreneurial ventures and less likely to stay in an unfulfilling work environment than previous generations. We became invigorated by the ways that business can go well and do good at the same time. If we were unsatisfied with our jobs or communities, we became relentless in finding a better situation even if we had to create it ourselves.

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We are the generation that doesn’t stop at the question ‘why?’ We ask ‘why not?’

Contrary to what has said or perceived, the original millennial is not lazy and selfish lacking motivation and creativity. The original millennial is a servant, innovator, go-getter – a leader. We’ve become leaders of the social entrepreneurship sector which emerged around 2007 during the time when most of us graduated college or started our careers. Many millennials have been inspired by a cultural change to create organizations and movements that are neither businesses nor charities, but rather hybrid entities that generate revenue in pursuit of social goals. Now there are tens of thousands of social ventures and many are being led and utilized by millennials. The original millennial believes that solutions of the past won’t work for problems in the future, and we will be the generation leading the shift and bringing change to life. 

To support the release of The Original Millennial eBook series, visit theoriginalmillennial.com

Your contribution is an early investment that will empower millennial entrepreneurs in the year to come.

Pre-Order TOM