Financial Advice from Parents: Millennials and Gen Z Need to Give Up
The financial decisions made by millennials and Gen Z are often shaped by the advice and guidance they received from their parents. While this can be helpful, it also carries significant risks that can lead to poor financial choices or stress.
Risk Averseness
For many Gen Z individuals, sticking with one job out of fear of change is a common strategy. However, this approach can limit opportunities for growth and advancement. "Stick with one job" advice often comes from parents who may have been more risk-averse themselves," Jessica Moorhouse explains.
Inherited Financial Beliefs
Millennials and Gen Z are often influenced by the financial habits of their parents. Many people struggle to unlearn unhealthy financial behaviors, such as not budgeting or saving consistently. "Healthy financial habits and relationships with money can be challenging to break," Jessica Moorhouse cautions. Inherited financial beliefs and traumas can impact one’s relationship with money.
Unlearning Healthy Habits
Overcoming these inherited habits is crucial for achieving financial independence. Parents’ advice on budgeting, saving, or avoiding debt often comes from their own experiences, which may not align with the child’s perspective. "If you’re using your parents’ guidebook for how to be an adult," Jessica Moorhouse admits.
Career Stability
For those who are more risk-averse, staying in one job can provide stability and convenience. However, this approach may prevent individuals from exploring new opportunities or advancing their careers. "The way of work has drastically changed over the past decades," Jessica Moorhouse notes, reflecting on her own career path.
Avoiding Financial Traps
Parents’ financial habits can also lead to financial traps. For example, relying too heavily on parents for support in managing money may result in poor financial choices or stress. "You really have to identify where your fears are coming from," Jessica Moorhouse emphasizes, urging individuals to let go of these traumas.
Actionable Steps
Millennials and Gen Z need to take control of their own financial journey by unlearning unhealthy habits, understanding where their fears come from, and building healthier relationships with money. Breaking free from parental advice can be challenging but is essential for achieving financial freedom.
In conclusion, while parents’ financial guidance may offer support, it’s crucial for individuals to recognize the limitations of this advice and take proactive steps toward independence in managing their finances.
