When I was in my first job out of college, I remember reading an article in the Richmond Times Dispatch that discussed how 40-something percent of recent college graduates were not saving for retirement. The excuse they gave is that they never learned anything about personal finance, in school or from their parents. I read an article last year in Yahoo! Finance about millennials who blame their parents for not teaching them about personal finance. The articles are 20 years apart and are focusing on the SAME POPULATION!
Back in 2005, when I read the article in the Richmond Times Dispatch, I wrote a letter to the editor (does anyone do that anymore?) to share my frustration with the article focusing on the ones who were struggling instead of the majority of millennials who understood the basic concept of not spending every dime you had and also saving for the future. My parents did not teach me about personal finance. We didn't talk about money. I had no idea what they made or what things cost. I didn't know if they had credit card debt or any personal loans. I don't blame them for not teaching me. I'm going to go out on a limb and say no one taught them about personal finance or how to manage money. It's something they learned through trial and error just like everyone in the history of time.
Now, do I think schools should have some practical classes about budgeting, personal finance, loans, interest rates, etc.? Yes, absolutely! Do I think a high school student is going to remember half of what they learn in that class by the time it becomes applicable to their life? Nope, not at all.
And because we millennials are great at blaming others and not taking accountability for our actions, here we are 20 years later listening to the same population, who are grown-ass adults, blaming their parents for them not being financially sound. You've had 20 years with tons of easy-to-digest financial information at your fingertips thanks to Google. Take some initiative and learn how to responsibly spend and save your money.
And really, in its simplest form, good personal finance skills boil down to spending less than you earn and saving the difference. That concept is not that difficult to understand.
Maybe I sound callous, but I do not have sympathy for my generation's money woes. And as I stated back in 2005, I would like to see someone do an article on the large percentage of millennials who have figured their shit out. Because there are a lot of us.
Since starting YNAB, the way I handle money has totally changed. I used to just track my spending, but now I actually budget. I know where every dollar is going, I save with intention, and I don’t feel guilty when I spend—because it’s all part of the plan. Honestly, I can’t imagine using anything else.
Think budgeting is too hard or time-consuming? I break it down into simple steps—starting with just tracking your spending. Learn how to see where your money actually goes, categorize your expenses, and lay the foundation for a realistic, personalized budget.
Do you really need a traditional emergency fund if you're using YNAB? I explore why getting a month (or two) ahead in your budget might be a better strategy—and how YNAB’s four rules can prepare you for any financial emergency.