What Millennials Know About Money and Work

We certainly don't want to replace one set of stereotypes with another, but there's no denying that people from different generations tend to see the world and plan their lives differently. Far from the entitled slackers they're sometimes made out to be, many millennials make smart decisions about their lives and finances--choices that many others could learn from. Read an excerpt below, and click through to learn more about lessons millennial men and women have to offer.

aarp.org - As stereotypes go, slacker millennials living with their parents—depleting the fridge and glomming off others—just may have to be rethought. Truth is, when it comes to managing their financial lives, those in the generation born between 1982 and 2000, now some 83 million strong, are making smart, somewhat surprising choices. Older generations can pick up several pointers from today’s 20- and young 30-somethings

Save more money.

Some 40 percent of millennials bumped up their 401(k) contributions in the past year, nearly twice the percentage as that of boomers, according to research from T. Rowe Price. More millennials, the study showed, stick to a budget, too

The Takeaway: Folks over 50 can use both 401(k) and IRA catch-up contributions to do likewise.

Debit trumps credit.

Nearly two-thirds of 18- to 29-year-olds don’t have a single credit card, Bankrate research found. That compares with just one-third of those 30 or older. The reason is twofold, says millennial Jason Dorsey, chief strategy officer at the Center for Generational Kinetics. Millennials entered the credit space when the market was really tight and debit was all that was available to them. But, he adds, they also “realize credit is a really fast way to get in trouble.”

The Takeaway: If you feel as if you overuse your credit cards—if your balance is going up every month or if you’re using one card to pay off another—make like a millennial, and take them out of your wallet. Don’t cancel them altogether, however; that’ll ding your credit score.

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