Parents only want the best for their kids. However, not all of the advice they give would be helpful even if they only have good intentions in giving them.
Millennials are living in a vastly different time. Society has changed since your baby boomer parents were the same age as you are now, so many things that might have worked for them in the past probably won’t work for you.
Here are two money tips millennials shouldn’t take from baby boomers.
Invest in a House
Bubbers BB/Shutterstock: Maintenance costs can easily add up, which many millennials might not be able to afford
One of the most common pieces of advice you’ll ever receive from baby boomers is buying a home. Unfortunately, following this isn’t really feasible for a lot of millennials.
While previous generations got massive returns for investing in real estate, millennials might enjoy the same perks. Putting down a 20% down payment for a house can be devastating to the age group’s net worth.
And to see substantial returns from investing in a home, millennials would have to hold onto their property for a long time, which might not be possible for those who plan on moving somewhere else in the coming years.
What’s more, another housing crash might decimate the value of their home. Not to mention, the costs of owning property is more than just the price you’d pay for them.
Keep Your Money in Savings
Andrey_Popov/Shutterstock: Keeping your money in savings will make you miss opportunities to grow your wealth
Another piece of advice you might hear from your parents is to keep your money in savings. While setting aside money for the future is a wise move, amassing cash in a place where it can’t grow much and won’t beat inflation.
Some financial experts recommend that you use your cash savings as investment capital to earn more money. Investing in high-growth companies is a good way to put your money to work in the short term.
One of the most promising stocks you might want to consider investing in today is Lightspeed (LSPD).
Investing for Millennials
OpturaDesign/Shutterstock: Robinhood is a commission-free investing app with a reported user base of 13 million people
Millennials are poised to benefit from stock investing these days thanks to the rise of platforms like Robinhood, Ellevest, and Acorns. What’s more, they are also lucky to have all of the information they need to make informed decisions right at their fingertips.
Thus, it’s no surprise that a BlackRock survey found that 45% of millennials said that they are more interested in investing in the stock market than they were a couple of years ago.