{"id":4980,"date":"2015-10-29T09:08:50","date_gmt":"2015-10-29T13:08:50","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=4980"},"modified":"2015-10-29T09:08:50","modified_gmt":"2015-10-29T13:08:50","slug":"kerrys-expert-advice-biggest-financial-fears-and-challenges-of-your-generation","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=4980","title":{"rendered":"Kerry’s Expert Advice: Biggest Financial Fears and Challenges of Your Generation"},"content":{"rendered":"
\n

\"images\"<\/a>Across generations, money is the most common topic\u00a0people think about every day, found the GOBankingRates 2015 Life + Money Survey<\/a>. But the types of financial worries people have vary by age group. Young adults are likeliest\u00a0to name paying for college as their biggest financial challenge. For a baby boomer nearing 65,\u00a0planning for retirement\u00a0will be a top priority.<\/p>\n

The recent Life + Money Survey found that each generation, from millennials to Generation X and baby boomers, is facing its own set of tough financial challenges. In fact, one of the central findings of the study is that Americans\u2019 \u00a0biggest money worries are closely tied to their stages of life.\u00a0Find your generation below and see how you stack up against your peers\u00a0\u2014 and how your generation\u2019s financial priorities compare to other generations\u2019 concerns.<\/p>\n

Read: On GoBankingRates.com<\/a><\/strong><\/p>\n

Read: Millennials Fear Living Paycheck to Paycheck 2x More Than Boomers (Infographic)<\/a><\/strong><\/em><\/p>\n

Millennials Struggle With Budgeting and Debts<\/h2>\n

Millennials (ages 18 to 34) often struggle to live within their means, which could be due to earning lower income early on in their careers and having underdeveloped financial discipline. This generation is most afraid of always living paycheck to paycheck and never getting out of debt.<\/p>\n

Millennials also find it more challenging to\u00a0stick to a budget than their older counterparts do.\u00a0Kerry Hannon<\/a><\/strong>, a personal finance and career expert, said it\u2019s vital that young adults start learning about finances and practicing basic habits like setting a budget<\/a> and saving.<\/p>\n

Paying for College Is a Top Concern for Millennials<\/h3>\n

Young millennials are significantly more concerned with covering college costs than people age 25 and older. Among college-age millennials (ages 18 to 24), paying for college was a particularly common challenge, with a third (32.5 percent) saying this is their toughest money struggle.<\/p>\n

Millennials Want to Become Homeowners<\/h3>\n

While older generations might have already achieved the major life event of buying a home, this goal is still ahead of many older millennials (ages 25 to 34). This age group is one of the most afraid of not being able to afford a home (11 percent) and the most likely to say saving for a home is their biggest financial challenge (16.6 percent).<\/p>\n

But millennials might want to delay buying a home,\u00a0said Hannon.<\/strong> \u201cMillennials tend to shift jobs more, and many work contract jobs \u2014\u00a0their work situations change more often than older generations\u2019,\u201d she said.<\/p>\n

\u201cMaybe buying a home is not for right now,\u201d Hannon<\/strong> said. \u201cYou can start saving for a mortgage, but saving for retirement is more important.\u201d\u00a0Yet with retirement still so far in the future, millennials are less concerned with retirement planning than older generations, found the 2015 Life + Money Survey.<\/p>\n

Related: How Millennials Can Solve Their 7 Biggest Money Problems<\/a><\/strong><\/em><\/p>\n

Younger Millennials Think About\u00a0Romance More Than Money<\/h3>\n

One area in which older millennials differ from college-age\u00a0millennials is what they think about most each day. Younger millennials think most about their love lives, with 27.5 percent giving this answer, making them the only group to think more about romance than money. Older millennials, on the other hand, think about money more often than any other age group, with nearly a third (31.6 percent) giving that answer.<\/p>\n

Gen X Thinks About Work and Vacationing the Most<\/h2>\n

Of all age groups, Gen X (ages 35 to 54) spends the most time thinking about work, with three in 10 saying this is the topic they think about most each day. Older Gen Xers (45 to 54) are one of just three age groups that thinks more about work than money, along with baby boomers (ages 55 to 64) and seniors (age 65 and older). They are also afraid of losing their jobs, with about one in six saying this is their top money fear.<\/p>\n

But while Gen X works hard, they also play hard. This generation thinks the most about vacationing, with about one in eight saying they think about this topic more than any other.<\/p>\n

Retirement Is a Major Concern for Gen X<\/h3>\n

Even with retirement still a decade or more out, retirement plans are a top focus for Gen X, particularly for older Gen Xers; 26.9 percent of this group said planning for retirement is their biggest financial challenge, and people in this age group are also more afraid of never being able to retire than any other age group, at 24.1 percent.<\/p>\n

With many Gen Xers looking ahead to retirement, it\u2019s the perfect time to start stepping up retirement savings, said Hannon.<\/strong> \u201cPeople in their 30s should start working toward maxing out 401k contributions and might even want to open a Roth IRA to save further,\u201d she said.<\/p>\n

As they approach their 40s, Gen Xers should turn to financial advisors<\/a>. \u201cYou need to get an overall financial plan in place\u00a0and rebalance retirement accounts regularly,\u201d Hannon<\/strong> said. \u201cThose retirement dollars are more important than ever.\u201d<\/p>\n

Related: 11 Common Money Mistakes People Make in Their 40s<\/a><\/strong><\/em><\/p>\n

Debt Is Still a Hang-Up for Some Gen Xers<\/h3>\n

Debt and other issues are still holding back some Gen Xers. Those ages 35 to 44 are the most likely of any group to name paying off credit cards as their biggest money challenge, which can be be an obstacle to achieving bigger goals like saving for retirement or investing. Plus, about one in five members of Gen X still can\u2019t\u00a0stick to a budget, and a similar portion fears always living paycheck to paycheck.<\/p>\n

But Gen Xers, especially those on the older end, can\u2019t afford to carry debt.\u00a0\u201cYou have to focus on paying down debts in your 50s,\u201d said Hannon<\/strong>, especially debts with high interest rates. \u201cDebt can be a real dream killer.\u201d<\/p>\n

Baby Boomers Worry the Most About Retirement<\/h2>\n

For boomers ages 55 and up, retirement is just around the corner, and it\u2019s their biggest financial concern.\u00a0This age group is most likely to be focused on retirement, with over a third (34.1 percent) naming planning for retirement as their biggest financial challenge. And one in four (23.9 percent) baby boomers is afraid he\u2019ll never be able to retire.<\/p>\n

Seniors past age 65 are only slightly less focused on retirement, with 17.2 percent still afraid of never being able to retire and 26.4 percent more concerned with retirement planning than other financial challenges.<\/p>\n

Boomers Think More About Their Health Than Money<\/h3>\n

One in four baby boomers thinks most about their health each day; for people age 65 and up, this number jumps to one in three (32.5 percent). \u201cWhen we start seeing our own friends facing health crises, or we\u2019re facing them ourselves, that\u2019s a big wake-up call for people past 55,\u201d Hannon<\/strong> said. \u201cYou realize you need to take care of yourself.\u201d<\/p>\n

\u201cThe big issue here is this palpable fear that they\u2019re going to outlive their money,\u201d said Hannon.<\/strong> \u201cI think everyone should consider working a little longer than planned, even into retirement,\u201d she said, which can help boomers save more and put off drawing on retirement funds or Social Security.<\/p>\n

This focus on health can be a boon to boomers if they use it as a motivation to take care of themselves and stay fit. \u201cOne way to fight back against ageism is to be physically fit,\u201d Hannon<\/strong> said, which is important for\u00a0boomers still in the workforce. \u201cYou give off this energy and enthusiasm that will work in your favor if you plan to work longer,\u201d she said.<\/p>\n

\u201cMore and more employers are open to phased retirement \u2014\u00a0maybe granting flexible hours or part-time and seasonal work,\u201d Hannon<\/strong> said.<\/p>\n

Identity Theft Is a Major Fear for Boomers<\/h3>\n

The 2015 Life + Money Survey showed that baby boomers and seniors fear identity theft much more than other generations. Identity theft is the top money fear of one in five (19.3 percent) boomers ages 55 to 64, while an even higher portion (29.2 percent) of people 65 and up say they most fear having their identities stolen. In fact, boomers and seniors fear identity theft twice as much as Gen X and three times more than millennials do.<\/p>\n

\u201cThis generation hasn\u2019t grown up with online stuff as part of their DNA,\u201d Hannon<\/strong> said. \u201cThey are computer savvy, but their overall comfort level with the digital world is just lower.\u201d With less of a digital mindset, online threats to their financial security and identity can loom larger for this age group.<\/p>\n

But baby boomers could also be more worried about identity theft because they have more to lose because of it. \u201cYou have more savings and there\u2019s more out there that belongs to you that identity thieves could target,\u201d Hannon<\/strong> said.\u00a0But she added that there are many tools that boomers can use to build security walls around their finances to protect themselves and their savings.<\/p>\n

Seniors Over 65 Are Focused on Investing, Building Emergency Funds<\/h3>\n

Boomers are also more likely to be focused on building an investment portfolio than other generations, with about one in 10 focusing most on this financial challenge. For people over\u00a065, this number climbs to 13 percent, the highest of any age group. The 65-and-over group is also 50 percent more likely to fear losing money in the stock market than any other age group. And\u00a0Americans 65 and over are the most likely of any age group to name saving an emergency fund as their top financial challenge (15.4 percent).<\/p>\n

These findings reflect retirees\u2019 need to live off of investments and savings, which makes managing portfolios and liquid savings higher priorities for them.\u00a0With limited income, \u201cyou\u2019re more sensitive to unexpected costs,\u201d Hannon<\/strong> explained.<\/p>\n

\u201cThese are the years when you need to skew to be more conservative\u00a0and have more of a balanced and solid portfolio<\/a> as you move to a fixed income,\u201d Hannon<\/strong> said. \u201cAt this age, pay close attention to investments and, at least once a year, rebalance and make sure your portfolio is on track.\u201d<\/p>\n

\n