From a financial perspective, many young adults in the millennial generation (born between 1981 and 1997) face a unique set of challenges right now: maneuvering a highly competitive job market, paying off significant student loan debt, finding an affordable place to live, dealing with the high costs of food and gas – a list that makes it difficult to find financial stability.
These challenges often lead to poor money management – and young adults coping with these situations often find themselves in debt, stressed out, and dependent on others. Fortunately, good money management skills can make it easier to clear these hurdles, move on to new opportunities, and accomplish personal goals.
Figuring Out Financial Goals
Setting goals is an important part of life – particularly when the goals pertain to money. Over time your goals may change, which likely will require you to adjust your finances. If you haven’t already figured out your goals for the future, you can start the planning process by answering the following questions:
- What are my short-term goals (e.g., new car, luxury vacation)?
- What are my intermediate-term goals (e.g., buying a home, starting a business)?
- What are my long-term goals (e.g., saving for my child's college education, retirement)?
- How important is it for me to achieve each goal?
- How much will I need to save for each goal?
Once you have a clear picture of your future goals, you can establish a budget that will help you allocate funds toward achieving them. This is also a good time to meet with a financial advisor and create a financial plan based on your goals to help you save enough money for the future lifestyle you envision.
When it comes to focusing on your financial future and accomplishing your goals, there are a variety of decisions that enter into the planning process.
These three articles may provide further insight as you consider your many options:
How Much Is Enough to Support Your Retirement Lifestyle?
By: Kevin Casteel, CFP® Trust Officer, Financial Planner
Create a plan to find balance between building a nest egg and enjoying life along the way.
Down-Payment Strategies: Financing vs. Cash
By: David Hertlein, Vice President, Senior Private Banking Relationship Manager
There is no ‘one size fits all’ approach when considering how to fund a real estate or investment down payment.
Financial Advice for Your Family’s Young Investors
By: Rob Whitney, JR., MBA, CFP® Vice President, Senior Financial Planner
Sharing stories of money lessons learned when you were young may be your most memorable legacy.
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This material is not a recommendation of any particular investment or insurance strategy, is not based on any particular financial situation or need, and is not intended to replace the advice of a qualified tax advisor or investment professional. Commerce does not provide tax advice or legal advice to customers. Consult a tax specialist regarding tax implications related to any product and specific financial situation. While Commerce may provide information or express opinions from time to time, such information or opinions are subject to change, are not offered as professional tax, insurance or legal advice, and may not be relied on as such.
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