Page 25 - ARUBA TODAY

BUSINESS Wednesday 27 november 2019
A25

Millennial Money: Break free of your parents' money patterns

By SEAN PYLES of NerdWal- tive method to ensure you
let channel your money in a
You can likely thank (or way that supports your vi-
blame) your parents for sion.
some aspects of how you Sanchez recommends au-
turned out. Maybe you tomating habits so your
have your mother's eyes or goals are easier to achieve.
your dad's habit of chew- If you want to increase your
ing with your mouth open. emergency fund, set up
How you manage money regular transfers from your
is another thing you likely checking account or pay-
picked up from your par- check so you don't have to
ents — whether they in- think about it.
tended you to or not. TIP: Break your goals into
While nearly 90% of parents smaller, easily achievable
believe it's important for actions. Each of these steps
their kids to grow up with will help you build the mon-
good financial habits, al- ey habits that create finan-
most half don't know how cial independence.
to discuss money with their FOCUS ON THE LONG TERM
kids, according to a 2019 The point of carving out
survey of 1,000 parents your financial indepen-
conducted by Edelman dence is to ensure you are
Financial Engines, a finan- making informed money
cial adviser firm. Further, In this Dec. 3, 2018, file photo a pedestrian is silhouetted against a ray of sunlight hitting a down- decisions that reflect your
25% of respondents never town courthouse in Atlanta. values. But it's also about
or almost never talk to their Associated Press setting yourself up for long-
children about household term financial success. That
finances, the survey found. Look for areas of overlap counseling and financial patterns. Financial habits means sticking to healthy
If your family avoided fi- to understand the money wellness organization. are built on daily actions. habits but being flexible
nancial topics, you may habits you learned. Did "Maybe you want to retire Identify those you can take enough to respond to life
find yourself uncomfortable your parents carry loads of early, or spend time writing to meet your money objec- changes. "Part of your mon-
managing money and un- credit card debt or run be- a book, or spend time with tives. ey habits should be regular
aware of the effect your hind on bills? Maybe they kids when you have them. "Once you have your goals assessments of how you're
parents had on your finan- were frugal savers. If you What's the life that you articulated and prioritized, doing," Golden says. "We
cial behavior. But part of aren't sure how your par- want to have?" understand that you can't all need to be realistic that
growing up is acknowledg- ents handled finances, ask TIP: Compare your mon- make everything happen things financially are not al-
ing what you learned from them. ey history to the financial all at once," says Levi San- ways static. You're going to
your parents — both good "I think having the money future you desire. If you chez, founder of Seattle- ebb and flow out of differ-
and bad — and correcting conversation with your par- dream about being a ho- based Millennial Wealth, a ent circumstances."
course as needed. ents is important, especially meowner, for example, but financial planning firm. "But TIP: Your financial goals and
To claim your financial in- if you come from a house- find that you aren't saving you can start the better be- priorities will likely change
dependence, define what hold where money wasn't enough monthly to build haviors and habits that can over time. Check to make
your money goals are, un- actively talked about," says up a down payment, see get you there." sure your habits are on
derstand how to achieve Paul Golden, managing di- how you can adjust your Budgeting is a simple, pow- track every quarter. And
them through daily actions, rector of communications spending habits. erful habit. The 50/30/20 reevaluate your goals an-
and focus on long-term fi- at the nonprofit National REWORK YOUR MONEY budget, where half your nually, so your money man-
nancial freedom. Endowment for Financial HABITS income covers needs, 30% agement evolves along
KNOW YOUR HISTORY AND Education. "Ask about the As you reviewed how you goes to wants and 20% with your priorities.q
YOUR IDEAL FUTURE challenges they dealt with handle money, you prob- covers debt payments
If you don't already, track and how they managed ably started to see some and savings, is an effec-
your money management them."
for a month. Document Next, think about where
your income, bills and sav- you want to be. "Put finan-
ings. cial goals in perspective
Now think about how your of life goals," says Kristen
parents managed money Holt, CEO of GreenPath Fi-
while you were growing up. nancial Wellness, a credit