Millennials, as known as Gen Y, seem to be on the minds of many. Especially when it comes to the prior Generation X who often refer to Millennials as lazy or entitled. However, a generation should not be labeled but per the individual. Now, we will dig a little deeper and try to find out what is true based on surveyed responds from Gen Y.
Top fear for most Millennials
When asked about their biggest, single, financial fear, 22% of Millennials said paying their monthly bills. Twelve percent of which said burdening dependents if they die prematurely. Another 12% said money for comfortable retirement. Then 9% said paying off or reducing credit card debt.
The study suggests the fear of being able to pay the monthly expense is real. Half of Millennials say they would have immediate trouble covering living expenses if the primary wage earner died. So, the question is, what is this the Gen Y’s doing to protect against this major financial concern?
Fifty percent of Millennials wing it when it comes to budgeting and live pay check to pay check. Earlier in our study it was mentioned if the primary wage earner unexpectedly passed away they would be in immediate trouble. So, what do you think would be the quickest and easiest way to solve that trouble? The solution to protecting future financial debt is to minimize your risk. Seems very simple, right? However, it is a major concern that is going unnoticed by many individuals and family members.
What is the best way to supplement income if another income depletes? Replace it! The easiest and cheapest way to replace that secondary income is to insure it with life insurance. Life insurance is an affordable option. Especially if you are young and healthy. That is when rates are the best. Yet, only half of Millennials own life insurance and 23% who have it only have it through their job. Which means if they get fired or changes jobs in most cases they lose that benefit.
Millennials are open to solving future money concerns
They just need the right guidance with all their options laid out in the open. The number one reason why they don’t buy life insurance is because they believe it is too expensive. But, 8 in 10 people over estimate the cost of a policy.
So, if taking anything away from this story please remember these four steps. First, plan for the unexpected. Unfortunately, no one lives forever. We have a duty as parents and mentors to inform the younger generations that life is not always easy. However, if a plan is in place life could be a little easier. Second, budgeting, try to live beneath your means. Stay away from unnecessary expenses. Third, saving, you may feel like you have nothing left to stay when paying your monthly expenses. But try to put away something. Start with a dollar a day and slowly increase the amount every month. Forth, preparing, if something were to happen. What would you do and how would you react to it?
Thank you for reading!
Frank Medina is an insurance expert who offers home and auto insurance in Wisconsin and Texas. He has helped thousands of customers throughout the years. Frank provide his clients with an affordable rate and works with some of the best insurance companies in the business. He is an independent insurance agent, married and a father to three.