Personal Finance

Money Management – Money Challenges of Today’s Youth

Money management for today's youth

We are living in 21-century but most of the old money laws still apply. So, what “old” laws I would like to tell to my kids or relatives who are soon turning 18? What are the money problems or challenges of today’s youth?

Here is a list of things which come to my mind. Let’s say, I would be today a very rich man if someone had told these things to me 25 years ago.


Many of today’s millennial’s don’t have any common understanding of money. It is frustrating that they don’t teach any personal finance skills in school and it’s even more frustrating if the youngster does not get this very important education from home.

Budget Plan

They have never made any budget what comes to money. They just spend without knowing do they have money to buy stuff or not. This will lead to problems mainly because the interest rates on credit card loans are beneficial for the lender not for you!

No goals or destination

It is common that they spend every penny they have. They don’t have any investment plans or goals. For example, they will have 50k$ in stocks or 50% left of the mortgage when they turn 40.


They think the time is on their side and they can start saving a little bit later. Unfortunately, it is another way round due to compounding. Start saving today and invest this money, by doing this you will have much more in the future.

Lack of Knowledge

They will invest in very risky businesses and lose their money. It is true that risk and profit go hand in hand. So, please remember the diversification. It’s your free lunch.

So, let’s take care of our youngsters. Please try to teach them the money management ABC’s. I know, it will be hard and painful, but hopefully, they will thank us later. 🙂