EMillennials have entered their 40s, and yes, this “young” and “naive” generation has officially entered middle age

Millennials are in their 40’s, and yes, this “young” and “naive” generation has officially entered middle age. 1981-1996 birth years are part of the Millennial generation, so they are now between 26 and 42 years old. I fall into this category because I was born in 1982, so you can call me an “elder” millennial. I was around when movies had to be rewound, wearing seat belts in cars wasn’t mandatory, and social media hadn’t been invented yet. Millennials are in trouble. We’ve been called “the most unfortunate generation” by The Atlantic Monthly and The Washington Post because we can’t rest or succeed. We are the children of more market downturns than any other generation. My fellow “elders” were still in college or high school when the Internet bubble burst and the Twin Towers collapsed, wreaking havoc on the economy in the early 2000s. We were just a few years into our careers when the Great Recession of late 2007 to 2009 devastated the market again. As the low man on the totem pole, we were the first to lose our jobs when budgets were cut or “restructuring” was needed. Things were good for a while, then came the pandemic of 2020. The crisis has taken hold in countless ways. From a financial perspective, those in the service industry, small business owners and “odd job” workers suffered significant losses. During the pandemic, Millennial elders may have been married (or divorced), saddled with mortgages, minivan payments and a slew of children to support. Younger Millennials are just gaining some traction in their careers, only to be derailed once again. We’ve seen plenty of disasters that have hindered our job prospects, career growth and earning potential, but that’s only part of the story. According to Forbes, millennials are leaving home as the economy and higher education landscape changes. The cost of attending college has risen dramatically over our lifetime, increasing 68 percent from 1999 to 2019. As a result, we are graduating from college with degrees and heartbreaking debt in a time of high unemployment, low wages and bear markets. Get Unlimited Digital Access $1 Trial 1 Month Claims Quote These financial difficulties don’t just affect our bank account balances. Galen Buckwalter is a psychologist who studies economic trauma and examines people’s relationships with money. He has concluded that 23 percent of Americans experience PTSD-like symptoms as a result of financial stress. For millennials, the figure is 36 percent. Experts point to unbearably high debt levels, stagnant income and nonexistent savings as underlying issues that contribute to this extreme stress. With so much fear and anxiety about money, it’s no wonder 66 percent of millennials have no retirement savings. According to the Pew Research Center, the median net worth of Millennial households is about 40% lower than Baby Boomers and 17% lower than Generation X at the same time in their lives. These are startling statistics, but they are not. While this generation has been affected by economic adversity, they don’t have to control the entire course of their lives. So what can we do? ▪ Start building an emergency cushion: Not having an emergency fund is one of the biggest landmines facing Americans. Even if we don’t fall into an economic crisis, there is always a financial crisis waiting to hit us. Have a cash reserve ready to meet 3 to 6 months of spending needs. I recommend keeping it in a high-interest savings account and setting up automatic deposits from your paycheck to start using it. Take control of your cash flow: Knowing what you spend each month will put you in control of your financial life. Make sure you know how much income you have and how much you spend each month so you can start creating the life you want. When you pay off debt or get a raise, use that money for another goal; don’t just start adding expenses. ▪ Invest for the future: The time to build wealth is still on our side. If you qualify, start investing in your company 401(k) or Roth IRA. look long term and invest for growth. Don’t get caught up in the chaos of the new hottest trends. Simply invest in “boring” mutual funds, exchange-traded funds or index funds to start growing your net worth. Think of market downturns as great investment opportunities, not something to be feared. News alerts in your inbox Sign up for email alerts and be the first to know when news is released. Sign up This site is protected by reCAPTCHA, which applies to Google’s Privacy Policy and Terms of Service. We don’t have to let economic disaster define us. In the long run, small changes today will make a big difference. It’s time to get out of the woods. It’s time to become the boss of your financial future. Jamie Bosse, CFP, is a member of the Financial Planning Association of Greater Kansas City. She is a financial planner with Aspyre Wealth Partners and the author of the Money Boss Mom, Helping Young Parents Become the Boss of Their Financial Future and Milton the Money-Savvy Puppy series.