Among the many stereotypes about millennials is the belief that they are poor with managing money. Actually, studies find that millennials fail at answering the basic test of financial literacy. But evidence also shows that when given the opportunity, they behave wisely.
For instance, the number of millennials who are eligible for 401(k)s rises to 70 percent. Also, among the people who are saving for retirement, twice as many young adults are increasing the percentage of income going to their 401(k) every year. So, without further ado, here are the things millennials should know about money.
Learn the art of negotiation
Fewer than 4 in 10 millennials negotiate their first wage. That is a loss, considering about 80% of the people who ask for a rise get some of the money requested if not all. Also, over 70% of hiring managers say people who negotiate their salary show more confidence in doing so. In addition to that, asking for a higher salary early can make a significant difference in your life.
A credit score is important, and having a good one allows you to qualify for lower interest loans, insurance premiums, car loan rates, and credit card rewards. It can be pretty easy to improve your credit score, but you need to understand a few facts about credit score.
You need emergency savings
According to a recent study, only 1 in 3 millennials have saved enough money for a single emergency. While now might be the time to invest in skills and other worthwhile expenses, it’s vital that you save enough money for an emergency. Experts suggest that you should keep enough to cover between 3 to 6 months’ worth of living expenses.
Don’t ignore your debt
2 in 5 millennials have credit card debt. Also, almost the same proportion has additional student debt. You can manage student debt if you start handling it immediately after graduation. There are programs you can enroll to help reduce your debt once you start working.