“You know, I was always top of my class.”
It’s what you’ll hear from almost every parent, which leaves you with the puzzling question, “if they all topped their class, who was second and so on?” Then you realize, parents don’t always tell the truth, and that extends to money matters.
As you grow up, your parents form your first school before you can join a formal class in whatever matter, including finances. Therefore, you’ll want to follow what they say and do. However, as you grow up, you start realizing they may not be correct after all.
It’s not that they lied; it’s the difference in the financial landscape between the millennials and when they were young.
You Must Get an Office Job
This is probably the most-told lie millennials have heard all through growing up. Not many parents understand today’s economy where remote working, the gig economy and telecommuting make a huge contribution to the economy.
In addition, this type of jobs offers more money than office jobs. You see, parents didn’t have access to technology back in the day, and if they did, it wasn’t as advanced as it is today. This means that freelancing wasn’t considered a real job.
However, times have changed. Today, almost all services exist online and all you need is an internet connection and you can order food, date online, pay your bills from the comfort of your couch and now, work from home.
Take the example of a freelance writer. The average hourly rates of a beginner range from $19 to $23. If one works for 6 hours a day, they can pocket over $120 per day which translates to $720 per six-day week for a single client.
You can also become an Uber driver and it’s simple to become one. All you need is a driving license, be at least 21 years old, have more than a year’s experience, own a car not older than 2007, and pass a background check. If you drive full-time, you may accumulate up to $750 per week.
Credit Cards are Evil
Growing up, children observe their parents’ attitude and behavior around money. This is how they pick up certain money traits which later affect them in their adult lives. One such attitude toward money is that credit cards are time-bombs, especially if they got into bad debts.
As the millennials grow up, they carry on this attitude toward credit cards and will be afraid to take out one. If they do, chances are they’ll also end up in debts because their parents didn’t guide them on how to use the card. Even worse, when they did, they told lies about the card.
However, if used well, credit cards can be a great financial tool since they can help build your credit. Moreover, they can help you track your budget and earn you travel rewards and cash-back. With that in mind, though, credit cards don’t work for everyone.
If you know you cannot be responsible with a credit card, then maybe your parents had a point. Credit cards aren’t for you, at least for now.
Without College Education, You’re Doomed
Go to school, get good grades, go to college, get a good job and work your way to the top. It’s what parents tell their kids, and while a college education is important, it’s not a life or death situation. In fact, with increasing college tuition and difficulty in getting jobs, a college education doesn’t seem as lucrative as before.
Millennials can explore other alternatives such as developing their talents and attending trade schools or coding boot camps, which offer a hands-on experience before using a lot of money on college tuition.
Financial Advice is for Rich People
According to parents, once you have loads of money in the bank, then you can start looking for a personal accountant to handle your money. Well, that’s part-true, part-lie. For starters, when growing up, your parents filed their taxes and managed all household finances, so maybe having an accountant is far-fetched.
Nevertheless, financial advice is for everyone regardless of their financial status and you can get it for a pocket-friendly price or even free. You can use apps such as MoneyLion which can offer financial advice based on your credit card, bank account and student loans or guaranteed approval personal loans . This it does by analyzing your spending patterns and income.
As a result, you’ll end up saving more money, improving your score and also reducing your debt. You’ll also develop healthy financial habits, courtesy of the rewards offered by the app.
You’ll Never Earn money in the Stock Market
It’s easy to believe this myth because chances are everyone you’ve met who has invested in the stock market has lost money. On the other hand, you hear of people who made billions trading in the same stock market, but it sounds like a fairytale.
It’s true the stock market is slippery and volatile, thus the stories of lost fortunes. However, it’s not true you’ll never make money trading stocks. In fact, investing in the stock market is a sure way of beating inflation while also increasing wealth over time.
Savings accounts in traditional banks offer little interest, making it difficult to keep up with inflation rates. This wasn’t the case when your parents were young. In today’s world, stashing money in a savings account means losing investment opportunities in the form of dividends and interest. Furthermore, your money will lose value over time.
Loyalty at Work Will Earn You Rewards
Gone are the days when loyalty at work got you promotions, job security, or a raise. Today’s workforce, on average, will stay at one job for a maximum of two years before moving to greener pastures. What’s more, thanks to the gig economy, you can work up to 3 jobs in a bid to secure your finances.
You see, once you stick to one day job, in the event of a job loss, you may end up in debt and frustrated. In contrast, as a freelancer, you can work as many hours as you wish and if you lose a single client, there are others to work with before finding a new one.
Furthermore, changing jobs or careers allows you to stay fresh while meeting new people and expanding your network.
Don’t Rent, Buy a Home
Among the measures of success, owning a home ranks top in the list, at least for parents. According to them, with a home, you can use its equity to advance your financial position. However, it’s unlikely you’ll end up like them.
First, because you need a lot of money to acquire a mortgage. After taking out a mortgage, it means additional financial burden because of the monthly payments. For a millennial with a low income and other financial responsibilities, such as student loans, owning a home is a financial death sentence.
Instead, renting makes more financial sense. Besides, it gives you flexibility should you decide to relocate. As a millennial, you’ll want to travel and see the world as you work. Owning a home requires financial stability, not to mention a plan to stay in it for over 5 years.