4 things you should be advising your millennial members against

If you’re not marketing to millennials, you should be. As of last year, Millennials surpassed Baby Boomers as the largest living generation in the United States. While there are many arguments as to the exact definition of the millennials age range, the majority of demographers start the generation in the early 1980’s and end it in the mid 1990’s. As this generation begins to take over the American workforce, here are a few things you should advise your millennial members against, to protect their finances and keep their money in your credit union.

Spending from their 401(k): While buying a house can be a great investment for a young professional, their down payment shouldn’t come from their retirement savings. Make sure your millennials know the penalties and taxes that can result from pulling money out of their 401(k) before they’ve reached retirement age. Have them open up a separate savings account and they’ll be able to save for that down payment in no time.

Being too conservative with their money: Being conservative with money is a great rule, but there are times when that rule is made to be broken. Sure, a credit card that’s abused could make a 24-year-old spiral into debt, but when used responsibly, it’s a great way to build credit. And while some millennials may not feel ready to start investing, they’d be crazy to not start taking advantage of compounding interest.

Living above their means: When you’re in college, feasting on a meal of chicken nuggets and ramen noodles, you probably can’t wait to get a real paycheck. Once that first job starts paying real money, it can be hard to not overspend. Tell your members to set up automatic savings, so those investments are taken care of before they’ve had the chance to blow money on a 60-inch flat screen or those $300 shoes.

Not paying attention: When you have a real job and you’re young, you aren’t thinking about mortgages and college funds. You know you have some money, but there’s a good chance you have no idea how much. Help your millennial members get in the mindset of tracking every dime they spend so they can grow their finances and not have to live paycheck-to-paycheck.


John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. Web: www.cuinsight.com Details