Building a budget is one of the first – and most important – steps to “adulting” (AKA managing your finances like an adult) and it’s one of the biggest stumbling blocks for Millennial employees.
One in four millennials has $30,000 or more in student debt – a massive obligation for someone just starting out in their career and who is also trying to save for retirement or upcoming life events like marriage, buy their first home or start a family.
Nearly a third of Millennials worry most about their student loans, over all other debt, and 56 percent worry about repaying student loans all the time, or often, according to a survey from American Student Assistance, a private nonprofit organization.
Millennial employees need to build a budget and set up a plan for paying down their debt, but many don’t know where to start. After all, they probably didn’t have any formal education on the topic: A recent study found that 54 percent of adults think a money management class in high school would have benefited them more than the rest of their education.
And much of the information Millennials find online doesn’t seem to fit their lives or financial situations (like this column suggesting Millennials could afford to buy a home if they just stopped buying expensive avocado toast).
Best Money Moves founder and CEO Ilyce Glink has been busy talking to employers and employees around the country about the financial issues they struggle with most. The young employees she’s talked to are particularly stressed about learning how to budget and balance their growing list of financial obligations.
Here are some of the questions they’re asking:
- What are the best strategies for building a budget?
- How do I better organize my existing budget?
- How can I save money while still having a fun social life?
- How can I save for retirement while paying off student loans or credit card debt?
- How do I budget for the high cost of living in a city?
- How do I budget for upcoming life events such as getting married, buying a house or having a baby? How do I figure out how long it will take me to save up for those events?
The fact that young employees are asking these types of questions is a sign that they recognize they haven’t solved the thorny issue of wanting to live a particular lifestyle while managing a limited amount of cash. Knowing what you don’t know — and seeking the answers you need — is the first step to reducing financial stress and building a more financially secure future.
When employees ask these questions, employers need to step up to help them find answers.
That’s where Best Money Moves comes in. We help employees assess their financial stress, learn how to manage and solve financial problems, pay down their debt and build the best budget for their unique financial situation using simple, easy-to-understand tools.
Let us help you help your employees manage their financial lives in a better, smarter, more efficient way. That will help dial down their financial stress, improving their productivity, retention, and engagement – big wins for you!
Call Best Money Moves today at 847-242-0550 to schedule a demo.