The article is written in a reflective point of view by writer, Abrar Al-Heeti. He on behalf of millennials, reflects upon difficulties many face when it comes to managing money. In general, young 20 and 30 year olds fall into patterns where they are not so concerned with the importance of saving money for their future plans or investing, but instead spend freely on items which could easily be avoided.
I found the points argued to be very truthful, as well as evident in my personal spending habits. I feel as if I can spend my money freely, because it is solely mine; I do not have a legitimate job and no proper understanding of the toll taxes take on a paycheck when supporting a family or paying bills. In other words, I notice myself as a young consumer to be spending foolishly and on random luxuries, with money I ‘do not have’, or know will run out quickly. Al-Heeti calls out millennials for not understanding that spending patterns during their 20s and 30s have an effect down the line into later years.
The solution of saving money for emergency funds and future endeavors is the emphasis Al- Heeti places on saving money through financial apps, so that later, money is plentiful and readily available for you if needed. I agree with what the writer is saying, and these small saving ‘tricks’ are ones which my parents often remind me of. One tactic, which is taking a small or large sum of money and saving it each pay period in an account is one which my mom forced me to do when I worked, and it most definitely has benefitted me down the road when I was in college and without much money. However, I find this tactic is easier to consistently do with direct deposit via a paycheck, because with physical cash in my hand I all of sudden think I am rich and invincible. The financial apps, Mint, Toshl Finance, Daily Budget, Digit, Acorns, QuickBooks Self- Employed, and You Need a Budget do exactly this, some with additional capabilities than comparing apps, but overall by tracking card and cash transactions in one place. You Need a Budget makes users claim each dollar they have to a category, so that your money is organized and your spare cash does not display itself as always readily available, but to be marked as savings. These apps manage your money patterns digitally, so that they are strictly and clearly outlined, displaying financial goals based upon your situation and the areas which need help and the areas which hold the most money for your account. Mint, can go as far as displaying your net worth by connecting stored data through the app to other financial institutions. I believe these apps have the ability to help users stay ahead of expenses and on top of their spending habits, all while recognizing spending alternatives.
Source: https://www.cnet.com/news/manage-save-invest-your-money-take-charge-with-these-apps/
1 comment:
Emily, I completely agree with you and Al-Heeti in that individuals in their 20s and 30s are not financially literate enough to understand the importance of saving money for their future. The specific applications help a lot for these individuals, but the only problem is they do not know they are in the app store and it doesn’t cross their mind when they are searching for new apps to download on their phone. Luckily my parents pushed me to realize the importance of saving money for the future which some students cannot receive the advice from their parents, so I then started to place my money in a Roth IRA. A Roth IRA is a vehicle in which after-tax income can be set aside and can be added to each year until they are eligible to receive the earnings when they are 59 and a half. For other individuals in the 20 – 30-year-old range it is a perfect vehicle for these people to place their money for retirement and not be able to touch it so it can grow exponentially for them. Colleges and high schools should require courses on teaching the youth the importance of saving and investing money. If there were only one to three courses available for them, the information would be embedded for them to understand that there won’t always be an abundance of money lying around for them to spend if they do not save.
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