Personal finance writer Kimberly Palmer has tackled another element of the Gen Y-money relationship: Our “financial optimism.” Those in a survey said they think they will eventually find their footing and establish a standard of living at least as good as the one they enjoyed growing up with their parents. Well, in my case, I hope to enjoy a lifestyle better than the one I had growing up.
These parts in the article stood out to me:
The survey found that the most successful Gen Yers tended to have parents with higher expectations and stronger financial education backgrounds than their peers who struggled more with money. The high-functioning group also tended to have taken multiple financial literacy classes throughout their high school careers as well as taught themselves more about money through online resources. “The young people who are taking a proactive approach to managing their money are light years ahead of those who are disinterested,” Serido says.
The groups that struggled more with their finances had less education and also less confidence, she notes. “They don’t think they know anything. They also perceive that they don’t have control over how money works. That’s what education does. … Just becoming informed gives you a sense of empowerment and ability,” she says.
Isn’t that awesome?! It’s true. Educating myself and, more importantly, applying what I’ve learned has been very much empowering.
Just at lunch today, my serpentine belt broke on my car. I’m not freaking out because I know I have the money to pay for that repair. Why? Because financial experts kept screaming, “BUILD AND EMERGENCY FUND!” So I went to my HR department to set aside savings from my paycheck to build an emergency fund.
KNOWLEDGE + ACTION = POWER!