Money Management Tips for Millennials

2014 Financial Advice

New Year's Resolution Tips for Managing Your Money
by VERGE Staff | Your Money | Monday, December 16, 2013

Each year, more than 40 percent of Americans, across all generations, make New Year's Resolutions. Many want to improve their health or travel more in the new year. Others seek to fix their finances. Sadly, only 8 percent of people who set New Year's Resolutions actually achieve success.

A recent PNC Survey of more than 3,000 millennials identified savings and budgeting as their biggest financial issues. Fifty-six percent found it difficult to stick to a budget, while 65 percent had trouble consistently saving. 

"Saving and budgeting go hand in hand. Millennials can't be successful in one and not the other," states Mike Ley, senior vice president of digital experience, The PNC Financial Services Group. 

Millennials focused on fixing their finances in 2014 should remember that financial freedom begins with being disciplined and having a plan. PNC offers the following tips to help you maintain control over your finances, which translates to more control over your life:  

Track your finances like the seasons: First things first – get organized. Keep a calendar, ideally through your bank account. Track money coming in and out of your account daily, weekly or monthly. This helps you better understand where you are financially throughout the month and accurately gauge how much additional money you can set aside in your savings.

Save without thinking: Create automatic savings rules within your account to increase your savings around important bank transactions each month. It takes little time to set up and streamlines the savings process. Move $25 into your savings every pay period or $10 into your savings after you set up monthly bill pay. Regardless of the amount, save at a point in the month that fits your financial needs. Be the boss of your account and make it work for you.

Obey your budget: Use categories to compare expenses month-to-month. Use that information to take note of what you are spending money to buy. Eating out too much, or grabbing a $3 coffee midmorning at work? Skipping that extra cup of Joe can save you $60 a month. Remember, it's always wise to spend less than you earn.

According to Francine Ward, author of Esteemable Acts: 10 Actions for Building Real Self-Esteem, “financial freedom is about empowerment, about taking control of your life so you can genuinely feel better about yourself.” So by following these steps, millennials should be on their way to a financially promising 2014. 

Photo credit: iStock Images


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