Prudential shares tips for Millennials during ‘Financial Literacy Month’

NEWARK, N.J.--(BUSINESS WIRE)-- Americans age 25 to 34 and defined as Millennials, are likely on the cusp of their prime earning years and at the stage of their lives where they are experiencing or considering significant milestones such as getting married, buying a home and/or having children. Yet, for many, immediate priorities are overshadowing the need to think about and plan for their financial future.

Twenty five percent of younger women who responded to Prudential’s study on the Financial Behaviors & Experiences Among Women felt they were not in the “right stage of life” to work with an advisor. In many cases perceived costs contribute to a reluctance to engage a professional to help.

“A common misperception is that hiring a financial professional is expensive or that you need to be wealthy to work with one,” says Caroline Feeney, president of Prudential’s national career distribution system. “But there are different types of professionals that can help you whether you’re just starting out or nearing retirement.”

Professional financial advisors do more than offer investment advice. An advisor may also be able to help by analyzing employee benefits, developing a system to manage cash flow, or planning for major purchases.

In support of National Financial Literacy month in April, Prudential is encouraging younger Americans to take charge of their finances. Choosing a financial advisor who can help take a comprehensive approach to planning for the future financially is a good starting point, according to Feeney.

Some common challenges advisors can help Millennials address include:

• Getting debt and spending in check – Many Millennials are managing debt. Whether grappling with student loans or credit card debt, an advisor can help you prioritize what to pay first or how to consolidate debt to lower interest rates. Reining in discretionary spending can go a long way towards tackling debt. Reducing fixed expenses can also help. For example, if you have a good payment history, see if your credit card company will lower the interest rate you are charged.
• Establishing a Budget – Although many Millennials are aware they need a budget, it is not uncommon for them to have a loose budget or none at all. Take a better look at your spending habits and identify where you can cut down or make wiser purchases. If you are using an ATM more than once a week, you need to take a closer look at where that cash is going and write it down.
• Developing a Realistic Savings Strategy – Whether it be retirement, a major purchase like a car or a home or simply saving for savings’ sake, an advisor can suggest the proper vehicle for each scenario so your savings are not just sitting in an account and are actually making money. If the company you are working for offers a 401(k) plan, that’s a no-brainer. If not, consider an IRA. Starting to save for retirement at a young age is a good idea and you won’t miss the money now, particularly if you set up automatic contributions.
• Establishing an Emergency Fund - Financial professionals typically recommend saving enough to cover three to six months of fixed living expenses like rent, utility bills and car payments. That way you'll be prepared if you get hit with an unexpected expense or lose your job, and you won't have to turn to your credit cards—or your parents—to cover your bills.

“The complexity of the options that exist when it comes to financial planning is harder now than for past generations, but it comes down to understanding where you are and defining goals for the future,” says Feeney. “Each generation has its distinct challenges. That’s especially true when it comes to money.”

To learn more about the value a financial professional can provide, click here (link to value of a financial professional video).

April was first promoted by the Jump$tart Coalition as Financial Literacy Month for Youth and later National Financial Literacy Month to highlight the importance of financial literacy in America.

Prudential’s national sales organization is comprised of approximately 3,000 highly skilled and credentialed professionals offering insurance and financial services and products. Along with over 300 managers, the financial professionals are deeply rooted in the communities they serve across all 50 states and Guam.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/

Financial planning and investment advisory services offered through Prudential Financial Planning Services (PFPS), a division of Pruco Securities, LLC (Pruco), pursuant to separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco and an agent of issuing insurance companies.

0274838-00001-00

Prudential
Janet Gillespie: 973-802-8012
[email protected]

Source: Prudential

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