I’ve always heard people say that they think Millennials understand and see things differently. Sure, we were born after 1980 and we were the first generation to reach adulthood in a new century, but I think the excuse, “It’s because they are a Millennial” has started to become more of a misconception.
Millennials don’t want, or know how, to save money. That might be true, but it’s not because we are millennials. I think it is more accurate to say there are two different fears that millennials faces when thinking about saving: ‘losing’ money or having it ‘taken away’ through deductions, and not having enough money at the end of the month.
I have a simple tip that can address both of those fears: make your money visual.
Budgets are cool. When people hear budget your money, most young adults think it’s complicated and full of spreadsheets. But it doesn’t have to be! It can be as simple as having a calendar and visualizing your money. Before you start writing on the calendar, write down all of your monthly bills, add them up until you have a total of your monthly bills. Then write down your income (how often you get paid a month and how much) and total those together. You can then subtract those two totals and know how much spending money you have for the month.
Visuals make savings real. For some, this might be visually enough but I suggest taking it a step further. Using the calendar, write down when your bills are due and the amount owed, then write down your pay dates. Look at when your bills are due and when you get paid. On your calendar, next to your pay date, write how much from that one paycheck needs to go towards bills.
Monthly planning works. By doing this monthly, you are able to visually see your money coming in, and where your money is going. This helps in other areas of your life where money is involved. Visually seeing your money will make you more aware each month of how much money you are able to spend. And after a while, you will even be able to see how much you typically spend on common items such as groceries and gas, which you can then subtract from your monthly spending. Eventually, with practice, you’ll be able to see how much you can save each month. It might not always be the same amount each month, but you will be able to consistently put some money away.
Cherish your hard earned money. Making your money visual and being aware of it can prevent you from making those impulse buys. Avoid those very tempting impulse buys by waiting a day or two, and see if you still actually want to make that purchase. Most of the time, you will no longer feel the need to buy that item. You might even forget about it.
Budgeting doesn’t always have to be complicated–it can be as simple as writing it down and making it visual. Take the first step towards responsible budgeting by making a pledge to save. It’s not scary, and it’s so easy, even a Millennial can do it!
What’s tip has helped your family budget and save? Share it with us!
Posted by Patricia Contic, Government Relations Coordinator, Resident Millennial and Saver