Three Ways Millennials Can Start Saving More Money

For too long, Millennials have gotten a bad rap about money and their ability to save for a rainy day or retirement.

However, a new “Relationship With Money” survey by financial services firm Edward Jones found that not only do more Americans born between 1981 and 1996 consider themselves “savers” than those in their parents’ Gen-X cohort (48 percent vs. 46 percent), but that Millennials also were better at socking away emergency funds (75 percent vs. 66 percent).

That’s right. The same Millennials whose motto could be “Why buy a car when you can Uber?”

“This debunks the myth that Millennials aren’t as financially focused as other generations,” says Edward Jones investment strategist Nela Richardson.

And the survey isn’t some outlier. It’s supported by other research.

The Federal Reserve Survey on Consumer Finances found that while Millennials are deep in debt, more than 42 percent have retirement accounts, the highest share for those under 35 years of age since 2001.

Part of what’s driving Millennials’ emphasis on saving could stem from lingering memories of the Great Recession.

“Back in the late 2000’s, the oldest cohort of millennials entered the worst job market since the Great Depression of the 1930’s,” says Richardson.

“For younger millennials, watching their parents and other family members go through that experience may have also made them more aware of the risks of a market downturn or some other unexpected event, such as losing a home or a job, and so they’re more conservative when it comes to spending and saving in their adult lives,” says Richardson.

One potential alarm bell uncovered by Edward Jones’ sampling of more than 2,000 adults nationally age 18 and over: While 92 percent were honest enough with themselves to recognize there was room for improvement in their financial health, the very thought of saving money sufficed to make more than a third feel either “anxious” or “overwhelmed.”

If that sounds familiar, here are three steps to consider:

• Identify your money-related emotions. People often have emotional responses to money. Getting a big bonus at work can make you feel euphoric; agonizing over what to do with it can be paralyzing even as the logical part of your brain (invest at least most of it) fights it out with the emotional part (splurge it all!). What’s key is knowing that letting your feelings dictate your spending, saving and investing choices can lead to poor decisions.

• Develop a financial strategy. Keeping your cool starts with identifying your main goals – a down payment on a new home, college for your children, a comfortable retirement – and then sticking to a sound, long-term path for attaining them.

• Get an “accountability partner.” Meaning, someone with whom you’re comfortable sharing your finances. It could be a family member. Or a professional financial advisor, such as a local one at Edward Jones, who has the perspective, experience and skills necessary to help you make the moves appropriate for your situation.

“Whether you are strapped with student debt, saving to buy a home or trying to build an emergency fund, there are trade-offs that must be made in balancing these short-term goals and our long-term financial future, such as investing for retirement,” Richardson says. “Without a sound financial strategy, most people tend to be reactive rather than proactive and feel that their money is controlling them.”

Three Ways to Stay Connected to Your Senior Loved Ones While Social Distancing

After more than 45 days in lockdown, it’s no surprise that many people are going a tad stir-crazy. But it’s far worse for seniors: Not only have visits from their kids and grandkids been suspended, but there’s the extra stress that comes with the nagging suspicion that they’ll be advised to remain on lockdown long after younger people begin trickling back to work and the world starts opening up again.

In fact, the AARP Foundation has even come up with this dire comparison: Prolonged social isolation, for those aged 50 and older, “is the health equivalent of smoking 15 cigarettes a day.” Fortuitously, some of the niftiest technology offers solutions both to keep us connected and protect against some of the miscreants taking advantage of the situation.

• Health Checks. If you are worried that all of the anxiety is harming your loved ones’ overall well-being, the machine-learning algorithms that analyze activity data as part of Alarm.com’s Wellness solution can provide you with the very details you’ve suddenly found yourself obsessing about.

Did they open their medicine cabinet when they should, to take their prescription? Have their sleeping, eating, and (yes) bathroom patterns changed? Are they up and about during the day?

All that and more is done by connecting their home to yours via smart-home technology, with real-time smartphone alerts to let you know if something’s amiss.

“You don’t even know it’s there, but it’s here to protect you and let someone know if something does go wrong,” says Margarete Pullen of Dallas, Texas, whose son had the system installed by an authorized service provider for her and her husband along with a Wellcam video camera with two-way voice capability.

• Movie meet-ups. Most of us are just trying to find novel ways to cope with a situation that Nicholas Christakis, a social scientist and physician at Yale University, told Science magazine “calls on us to suppress our profoundly human and evolutionary hard-wired impulses for connection.”

Google’s new Netflix Party extension lets friends and family watch – and video-chat their way through – a movie together on their computers. You’ll need a NetFlix subscription, but then you’re free to debate if the Tiger King is worth all the hype and whether Carol Baskin really did kill her husband. Plus, unlike in real theaters, not many people (if any) are physically there to complain if you’re making too much noise eating popcorn.

• Apps! Apps! Apps! No NetFlix subscription? With apps such as FaceTime, Skype, Houseparty and Zoom comes more proof that social distancing needn’t mean social disconnecting. Mass virtual dinner parties. Mass virtual “happy hours.” Mass virtual gym classes. They’ve all become quite the rage, with one Vermont couple in their eighties even touchingly using Apple’s FaceTime to see and talk to each other after the husband had to be put in a nursing home that bars visitors during the pandemic.

Want to be a hero in your neighborhood? Use an app such as Instagram to share a video of someone Alarm.com’s doorbell cameras caught swiping one of the many, many packages you’ve been having delivered.

Advice for Graduating Seniors and Their Parents

One of the many casualties of the COVID-19 pandemic has been (or will be) the loss of certain rites of passage for the high school class of 2020. In no specific order, most have lost out on competing in their final year of spring sports, their proms, their graduation ceremony, Senior skip and/or prank day, grad-night outings or parties and in some cases, where students do not have access to Wi-fi or computers in their homes, the end of their school year.

While I cannot imagine anyone wishing these circumstances to befall any child, the fact is that we have no control over the situation. I learned a long time ago that the best way to deal with things is to let go of the things that are beyond my control and put all of my energy into to the things I do have control over. In the words of legendary basketball coach, and very wise human being, John Wooden: “Don’t let what you can’t do, get in the way of what you can do.”

If parents are talking to each other about how awful things are, it does not help anyone and actually hurts their children. When parents express how badly they feel that their child is going to “miss out” on their graduation ceremony or their prom, it actually makes their kids more anxious than they probably already are and makes them feel worse not better.

These things are not going to happen, so I find it is best to accept that fact as soon as possible and begin looking for opportunities in the situation. No circumstance, regardless of how bad or tragic it seems at the time, is without opportunities within it.

High school seniors, in general, are known to feel anxious about all of the big changes that are coming their way, without the added stress of a pandemic and all of the uncertainty it brings. What they need right now is reassurance from their parents that things will work out in time.

When they see that their parents are upset or scared it makes them feel more scared. There’s additional stress in many households for the parents, many of whom are suddenly unemployed, but as the adults in the household it is important to shield your children from those additional concerns right now. If they see you are fearing your future that will likely make them more anxious and fearful about theirs.

A majority of the kids I have talked to are more upset about not being able to hang out with their friends, than they are about missing their senior rites of passage. Some say their parents are more bummed about all they are losing (not being able to post pics on social media from the events they are missing) than they are that their kid is missing the events.

Many of life’s greatest triumphs are sprung during challenging times. Companies like Apple, Microsoft and Airbnb were all born in horrible economic downturns. Nelson Mandela unjustly spent 27-years in prison and could have easily spent those years feeling sorry for himself. Instead he used that time to grow himself into one of the most revered leaders of all time and succeeded in eliminating apartheid in his country.

If you live in the present and take advantage of what each day has to offer you may be surprised to find yourself better off than you were before the pandemic happened.

Adversity is a fact of life for almost everyone. Some people let adversity destroy them, and others look at it as a gift and experience growth. The only difference is in which way you CHOOSE to look at it.

As Wayne Dyer says, “It makes no sense to worry about things you have no control over because there’s nothing you can do about them, and why worry about things you do control? The activity of worrying keeps you immobilized.”