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Avoiding Bankruptcy: Financial Tips for Generation Y

Posted on in Bankruptcy

As a society we have become accustomed to labeling different generations with short and catchy nicknames. Currently we have Generation X for those born from 1965 through 1979; Generation Y for those born from 1980 through 2000; and lastly we have Generation Z for those born from 2001 through the present. Generations X and Z may already be settled into a lifestyle or only dreaming of what they want to be when they grow up, but Generation Y, at 70 million strong, is applying their own ideals as they enter the workforce, according to USA Today.

Generation Y often described as smart, brash, tech savvy and ready to challenge the multigenerational workforce as they carve out their professional niche. Work and life balance is just not a theory for Generation Y but a mantra.

When it comes to finances, they are on top of the situation. Thirty-seven percent of Gen Yers expect to start saving for retirement before reaching the age of 25 with 70 percent already contributing to a 401(k) plan.

Perhaps their determination to build a better financial balance comes from witnessing the financial hardship and rise in bankruptcy endured by previous generations: unemployment, layoffs and the deflation of the dot.com bubble. Although they are paying close attention to their savings, who is to say that the pressures of repayment of federal student loans and credit card debt may become Generation Y's personal dot.com?

Not so, says Kyle and Justin, co-owners and the “good people” of Young and Thrifty. The duo who love learning and writing on personal finance have a few financial tips for their fellow Generation Yers. Kyle and Justin compiled a few suggestions for Gen Yers who find themselves part of their own personal duo.

Communication – turn off the television and have a meaningful one on one regarding finances. Define your financial stress on paper. Jot down just what money is currently coming in and what is going out. By working as a team, you can determine what each person is willing to sacrifice or refuse to let go. Avoid the blame game at all times.

Creditor contact – instead of living with an ever ringing telephone, face it head on. Open the lines of communication with your creditors. Believe it or not, creditors are willing to work with you. They may lower your interest rate on credit cards but only if you choose not to ignore their efforts to contact you. If the repayment of student loans are in the picture, do not ignore the debt, it is not going away anytime soon.

Cash is king – sit down with your partner sans the television again and work out a reasonable budget. Kyle and Justin suggest using a cash jar system. Label each jar with the expenditure and add the cash to that specific jar. No more, no less.

Would you like fries with that? – it is not a suggestion to apply to a fast food chain but crafting a part-time position to suit your professional schedule is not out of the question. There are many interesting opportunities out there. Perhaps a weekend of dog walking, house sitting or even babysitting can increase the financial flow. Also, by lengthening your work schedule there is less time to spend those few extra bucks.

Although it appears that this generation has it all figured out, no generation is invincible. With more than 60 percent of employers experiencing tension between employees spanning the different levels of generations, no job is secure. There may come a time when the Generation Yers may find themselves in financial straits and possibly considering filing for bankruptcy to alleviate the financial strain.

No matter what generation you hail, the experienced bankruptcy attorneys of Newland & Newland, LLP, serving Illinois residents in the Cook, Lake, DuPage, McHenry, Kane and Will counties, will personally and professionally assess your financial situation to determine if bankruptcy is the right option for you. We will take the time to discuss your legal options as well as offering suggestions for life following bankruptcy. Contact us today for your free phone consultation

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