--- title: "Millennials and Money: Their 3 Biggest Challenges Explained" description: Millennials struggle with several areas of finance, often because they haven't been taught how to plan for these major challenges in money management. image: https://www.themcgriffalliance.com/hubfs/millennial%20money%20challenges.jpg --- [![McGriffAlliance_logo.png](https://www.themcgriffalliance.com/hs-fs/hubfs/images/home_page/McGriffAlliance_logo.png?width=266&name=McGriffAlliance_logo.png "McGriffAlliance_logo.png")](https://www.themcgriffalliance.com) ![bg-img11.jpg](https://www.themcgriffalliance.com/hs-fs/hubfs/images/contact_us/contactus_header2.jpg?width=1500&name=contactus_header2.jpg "bg-img11.jpg") # [Millennials and Money: Their 3 Biggest Challenges Explained](https://www.themcgriffalliance.com/blog/millennials-and-money-their-3-biggest-challenges-explained) ![Joel McGriff](https://www.themcgriffalliance.com/hubfs/images/about_us/joel.png) By [Joel McGriff](https://www.themcgriffalliance.com/blog/author/joel-mcgriff) - October 24, 2017 - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fmillennials-and-money-their-3-biggest-challenges-explained&t=Millennials%20and%20Money:%20Their%203%20Biggest%20Challenges%20Explained) - [**](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fmillennials-and-money-their-3-biggest-challenges-explained&text=:%20Millennials%20struggle%20with%20several%20areas%20of%20finance,%20often%20because%20they%20haven't%20been%20taught%20how%20to%20plan%20for%20these%20major%20challenges%20in%20money%20management.) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fmillennials-and-money-their-3-biggest-challenges-explained&title=Millennials%20and%20Money:%20Their%203%20Biggest%20Challenges%20Explained&summary=Millennials%20struggle%20with%20several%20areas%20of%20finance,%20often%20because%20they%20haven't%20been%20taught%20how%20to%20plan%20for%20these%20major%20challenges%20in%20money%20management.) - [**](https://plus.google.com/share?url=https%3A%2F%2Fwww.themcgriffalliance.com%2Fblog%2Fmillennials-and-money-their-3-biggest-challenges-explained) ![millennial money challenges](https://www.themcgriffalliance.com/hs-fs/hubfs/millennial%20money%20challenges.jpg?width=300&name=millennial%20money%20challenges.jpg "millennial money challenges")Someone was finally brave enough to ask the question on Thursday, Oct. 27, 2017. That's when the Huffington Post published a story that might as well have been a gut punch to parents whose kids are between the ages of 20 and 34. The headline was simple: "[Why Is No One Teaching Millennials About Finances](https://www.huffingtonpost.com/aaron-michel/why-is-no-one-teaching-mi_b_12674674.html)?" It's a great question, one that parents of millennials need to address. Because if they don't, there's a good chance they'll wind up: A) Financially supporting their children for long periods of time. B) Watching their kids struggle financially for long periods of time. C) Having their hard-earned wealth squandered by their heirs. None of these options is particularly appealing, right? But **all three are likely** if parents of millennials don't start teaching their children money management skills. **Consider the following:** - Millennials are on track to be the **best-educated generation ever**, according to [research](http://www.pewresearch.org/fact-tank/2015/03/19/how-millennials-compare-with-their-grandparents/ft_millennials-education_031715/) conducted by the Pew Research Center. - Sadly, **only 7 percent of millennials** have ever studied personal finances, according to a [report](https://about.bankofamerica.com/assets/pdf/bmh-millennials-report-spring-2015.pdf) published by Bank of America. - Only about a quarter of all millennials have **basic personal finance skills**, according to a [study](https://www.cnbc.com/2017/02/14/millennials-arent-as-smart-about-money-as-they-think.html) conducted by George Washington University. Combine this information with the [fact](http://time.com/money/3925308/rich-families-lose-wealth/) that **70 percent of families squander their wealth** by the time it reaches the second generation and you're faced with the reality that there is only one thing to do: Teach your millennial children how to manage their money and your wealth. Here is a look at three things **parents must teach their millennial children** about money: #### 1. Begin with the Basics Budgeting 101 is the best place to start with your millennial children. Many are facing uncertain financial futures, thanks in large part to **[student loan debt](https://www.themcgriffalliance.com/blog/5-questions-you-should-be-asking-about-college-savings-plans)**, a soft job market and their willingness to make ends meet through "gigs" instead of career-building jobs (at least for now). If you introduce your millennial children to budgeting, help map out their monthly expenses and get them to start saving something, that's a positive step in the right direction. #### 2. Introduce Alternative Investments Even though many millennials don't understand finance, they appreciate retirement planning. According to a survey conducted by Capital Group, **more than 90 percent of millennials** are using 401(k)s or IRAs to save for retirement. That's incredibly encouraging – and it's an opportunity to build on their interest in long-term investing. Parents who understand the value of alternative investments. Introducing millennials to [**alternative investments**](https://www.themcgriffalliance.com/financial-planning-has-failed) (whole life insurance, real estate, private loans) early can be a great way to help your children follow in your financial footsteps and build life-long wealth. #### 3. Start Planning to Sustain Your Family's Wealth It's easy for anyone who has worked hard to build wealth to simply hand an inheritance to their heirs. After all, that's they way it's been done for decades. But it doesn't work: Family wealth is gone by the time it gets to the second generation. **[Heritage design](https://www.themcgriffalliance.com/blog/how-heritage-planning-preserves-your-familys-wealth-values-and-traditions-for-future-generations)** is a better way. It's the act of passing along your wealth and your values. It involves a series of decisions and actions that have nothing to do with money (at least on the surface). It's about sustaining your family's wealth by teaching your children to communicate, work together, play together and appreciate each other regardless of wealth – then passing along your wealth. #### Today, Tomorrow, and the Future The long-term financial success of your children – today, tomorrow, and in the future –depends on your ability to educate them. [Contact The McGriff Alliance](https://www.themcgriffalliance.com/contact) to discuss how you can start building a brighter tomorrow for your children – and then address the future of your wealth. [![New Call-to-action](https://no-cache.hubspot.com/cta/default/1859948/4443a14d-3536-4051-8445-a1dbedeed0f5.png)](https://cta-redirect.hubspot.com/cta/redirect/1859948/4443a14d-3536-4051-8445-a1dbedeed0f5) ## Leave a comment ![bg-img14.jpg](https://www.themcgriffalliance.com/hs-fs/hubfs/images/blog_page/blog-subscribe.jpg?width=750&name=blog-subscribe.jpg "bg-img14.jpg") ## Subscribe to Our Blog Sign up to keep up with our latest updates. ![Joel McGriff](https://www.themcgriffalliance.com/hubfs/images/about_us/joel.png) Written by [Joel McGriff](https://www.themcgriffalliance.com/blog/author/joel-mcgriff) Joel began his financial services career with the Principal Financial Group in Minneapolis. In 1985, Joel moved to Birmingham to build a practice around the many relationships he had developed while growing up in North Alabama. [![New Call-to-action](https://no-cache.hubspot.com/cta/default/1859948/2d74dc3b-c05d-464d-b90e-864bab349306.png)](https://cta-redirect.hubspot.com/cta/redirect/1859948/2d74dc3b-c05d-464d-b90e-864bab349306) ### Posts by Topic - [Prosperity Economics (26)](https://www.themcgriffalliance.com/blog/topic/prosperity-economics) - [Life Settlements (16)](https://www.themcgriffalliance.com/blog/topic/life-settlements) - [Infinite Banking (15)](https://www.themcgriffalliance.com/blog/topic/infinite-banking) - [Alternative Investments (9)](https://www.themcgriffalliance.com/blog/topic/alternative-investments) - [Financial Advice (9)](https://www.themcgriffalliance.com/blog/topic/financial-advice) - [Heritage Planning (9)](https://www.themcgriffalliance.com/blog/topic/heritage-planning) - [Wealth Planning (6)](https://www.themcgriffalliance.com/blog/topic/wealth-planning) - [wealth management (6)](https://www.themcgriffalliance.com/blog/topic/wealth-management) - [Advice (5)](https://www.themcgriffalliance.com/blog/topic/advice) - [retirement planning (5)](https://www.themcgriffalliance.com/blog/topic/retirement-planning) - [debt management (4)](https://www.themcgriffalliance.com/blog/topic/debt-management) - [Life Insurance (3)](https://www.themcgriffalliance.com/blog/topic/life-insurance) - [Longevity in America (3)](https://www.themcgriffalliance.com/blog/topic/longevity-in-america) - [Risk Assessment (3)](https://www.themcgriffalliance.com/blog/topic/risk-assessment) - [Bank (In)Security (2)](https://www.themcgriffalliance.com/blog/topic/bank-insecurity) - [Civil Forfeiture (2)](https://www.themcgriffalliance.com/blog/topic/civil-forfeiture) - [Risk (2)](https://www.themcgriffalliance.com/blog/topic/risk) - [Stock Picking Contests (2)](https://www.themcgriffalliance.com/blog/topic/stock-picking-contests) - [Suze Orman's Advice (2)](https://www.themcgriffalliance.com/blog/topic/suze-ormans-advice) - [multi generational financial planning (2)](https://www.themcgriffalliance.com/blog/topic/multi-generational-financial-planning) - [Are Banks Unsafe? 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