Foundational Strategies of Financial Planning for Millennials

Financial Planning pic
Financial Planning
Image: usatoday.com

A graduate of the University of Missouri in Columbia, Kevin Waida earned his BA in communications. Kevin Waida also completed a double minor in personal financial planning and business and has a strong personal interest in these areas. A key consideration when planning one’s financial future involves age and timeline. Millennials in the 20 to 35 age group have a long future ahead of them, with retirement three to four decades away.

Millennials are often focused on financial prioritization, as they have competing demands on limited resources. Choices involved include repaying student loans, creating emergency savings, staying on top of bills, and generating retirement savings. On top of this, there are lifestyle demands, such as vacations and car purchases, to consider.

One tool for simplifying these often difficult choices is the option of automatic banking. This reinforces disciplined spending through scheduled withdrawals from the checking account or paycheck. Money is simply transferred to retirement, rent, and emergency savings accounts, and the temptation to spend too much money removed. Another resource many millennials find worth exploring are no-cost online budgeting tools. These software applications offer an easy-to-use interface for managing money and spending on a daily basis.

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