Financial advice for the new millennium

My son Peter, who had just turned on the 26th sent the following email:

“We see this tweet:” FYI: carrying a credit in the $ 1K 18 percent of card balances to blow $ 180 / year of interest, you can make better use elsewhere. “I want to know:? not carrying a month in 18% of $ 1,000 is $ 180 or 18% of total so it is only 1.5% a month? I never pay interest. ”

I’m sure Peter’s 18% annual growth rate, I congratulate him never pay interest (see how to make your first credit card).

A few days later, I received another e-mail from Peter:

“Do you know what I recently signed up for, it seems useful to gather in one page?. All of the financial accounts easier monitorinG. ”

Yes, I told Peter, is the best choice Kipling budgeting website (see how to stretch your money)

Peter recently moved into new digs prompts another question: “how much of my income I should be spent on rent?”

A: We suggested that he spent his after-tax income for housing of 35% (see how to divide your salary)

I think you know what your child really grown up when he does not ask you for money, you begin to ask how to manage yourself. Parents need to realize that money to educate their children not to give them money or help them open their first savings account stop. They need your guidance more as they get older.

But the young man said, they do not always get HELp their needs. On average, TD Bank Financial Education Millennium survey two-thirds of people say they want their major life events, such as go to college, start a new job or have a financial impact a child is better prepared. 22% of people say they are in “extreme financial pressure.”

Millennium finance research at Fidelity Investments, 39 percent of those responding said they at least do not have to worry about their financial future once a week. Women more often than men missingLack of self-confidence; 19 percent of Generation Y men who say they never worry about their financial security, while only 2% of Gen Y women said the same.

Trusted recommendations. When young people need financial help, surveys consistently show that they are most likely to turn to family and FRiends. When Fidelity Information about the issue of money asked who they trusted most in 33% of the respondents their parents – the first choice. In addition, 59% of people think their parents are good financial role models, while 76% said they did not start saving and investing for future parents to talk to any difficulties.

Nevertheless, nearly half of people admit they do not get financial advice from their parents. Almost a quarter of that money when it comes to recommendations, they believe that “no one.”

In my view, what we have here is failure to communicate – the confidence of parents who may feel ill-prepared to provide financial counseling and adult children who are gun shy about the crisis between the ask. But whether it is the subject of a generation should find intimidating. PETER is the question, he said that children recommend desire is often simple, the answer is very easy to.