Road to Millions for Filipino Millennials and Professionals is a new series for financial literacy. The Millennial generation are people born from 1984 to 1996 and majority of them are already self-employed, employed, or practicing professionals. Unlike the generations before us who were able to amass massive wealth during their time, millennials are deprived of financial literacy.
Importance of Millennials and their impact to the world
According to Dimock, the millennial generation were born during the times of recession and that is not a good thing. As successors of the baby boomers and millionaires of the past, we need to step up our game for our generation and the next generation. Financial literacy was never thought in school and we are left with no one to guide us on how to manage our money. Thankfully, we are born with the internet and gadgets that shaped our lives. The internet is flooded with vast information about money and how to properly manage it.
Millennials lack Financial Literacy
The goal of this Road to Millions for Filipino Millennials and Professionals series is to impart financial literacy to everyone. As a millennial myself, I regret not knowing much about financial literacy in my teenage days. I was not thought at home and school about money. I learned budgeting, investing, and savings through books and the internet. Despite several online investment platforms, many millennials struggle when it comes to investing.
How to gain Financial Literacy?
Financial Literacy is gained from reading and watching experts. According to Robert Kiyosaki, Financial Literacy is:
- knowing the difference between assets and liabilities,
- Learning cash flow as opposed to capital gains,
- leveraging, and
- making your own financial decisions.
Budgeting, Emergency funds, and Investing are all important aspects of financial literacy. Emergency Fund is important because it will support us in times of unemployment, sudden medical/accident expenses, and other calamities. Lack of budget can make a person poor, and proper budgeting will make a person rich. Savings under Philippine’s low interest rates will not beat inflation. The Php50,000 you saved now will not have the same buying power in fifteen (15) years. Saving all your money in the bank is not a guarantee for retirement. As early as now it is important to think of your retirement. It is also important to know how to grow your money.
How can we make our money grow?
There are many ways how millennials can grow their money to beat inflation such as business, Stock Market and UITFs. It may seem intimidating but we can absolutely learn this and join the trend. I was 17 when I became interested in stock trading, however back then there were no BDO Nomura and BPI Trade. You have to look for a broker who will transact for you, nowadays we have everything at our fingertips. Even buying gold is easier now and will be easier in the future.
For starters, I will recommend that you read Robert Kiyosaki’s Rich Dad, Poor Dad.
Works Cited: Dimock, Michael. "Where Millennials End And Post-Millennials Begin". Pew Research Center, 2018, http://www.pewresearch.org/fact-tank/2018/03/01/defining-generations-where-millennials-end-and-post-millennials-begin/. Accessed 3 Jan 2019. Kiyosaki, Robert. "The Four Foundations Of Financial Literacy". Rich Dad | Financial Education & Coaching For Everyone, 2019, https://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/August-2012/what-is-financial-literacy.aspx. Accessed 4 Jan 2019.