Six Financial Tips for Millennials
Article revised on 28 February 2020
Millennials, those born between 1980 and 2000, face different challenges and economic realities than preceding generations. Plus, the priorities of this segment representing a little over 20% of the Quebec population differ from those of previous generations. Here are six financial tips to guide them toward sound and realistic management of their personal finances.
1. Start saving early
You just got a well-paying job. It’s very tempting to live it up. Play it smart and put aside some money with regular deductions from your pay dedicated to savings. Set up a budget and manage it carefully. Don’t forget to build up an emergency fund to help you deal with unexpected financial challenges.
2. Repay your debts promptly
The average Quebec student debt at graduation was $16,500 according to an Ipso-BDO survey released in 2017. If it’s the only debt you have, repay it quickly. If not, focus on the debts that have high interest rates before paying off your student loans, since they probably have lower interest rates.
3. Contribute to an RRSP
As your savings add up, you’ll have various options for investing. Even if retirement is still a long time away, why not start with an RRSP ? Are you thinking about buying your first home? You can withdraw up to $35,000 from your RRSPs under the Home Buyers Plan (HBP).
4. Look after your credit rating
Keep the credit utilization ratio low on your credit card by using less than 35% of your available credit and make the required payments every month. A bad credit rating will have a direct impact on your ability to secure a loan.
5. Reduce your bank fees
Choose a flexible account that meets your needs. You can use the Account Comparison Tool to compare more than 100 different packages from over 20 financial institutions. This can save you money on bank fees.
6. Set realistic financial goals
It’s never too early to develop a financial plan. Set realistic short-, medium- and long-term goals. Meet with a qualified financial security advisor who can help you reach your goals.
Start saving now!