How prepared are millennials to weather the financial fallout from the COVID-19 pandemic? Not so well. The New York Times’ piece, “Young Adults, Burdened with Debt, Are Now Facing an Economic Crisis,” points out that at the cusp of the 2008 financial mess, Generation Xers had about twice the total assets on average that millennials, who are around the same age, own today. They also bear much more debt, between outstanding student loans, car loans, and credit card balances. Despite government efforts to delay or forgive some of these debts, many already had trouble making ends meet before losing jobs or gig-economy work. And their parents, many of whom are struggling financially themselves, may not be in great positions to help much.
Trusted financial advisors and other consultants may be able to help such families create plans to minimize the pain and maximize eventual gain. But to make any plan work, it’s crucial for the younger generation to develop solid financial values and skills.
The Smart Financial ParentingTM workshop, which lends itself beautifully to online sessions, provides advisors tools, exercises, and discussion starters they can present to their client/parents or grandparents, with or without the adult children present.