Six Reasons Why Gen X & Gen Y Need Some Serious Financial TLC



  • They are making poor decisions: As a result of that fear they are not making the best long-term decisions for their futures. A recent ICI study shows only 34% of investors under age 35 are willing to take substantial risk with their retirement money – the exact time in their lives when they should take that risk.


  • Something as “simple” as a 20-year head start can give you 5x more money: Let’s take 2 people.  Jane starts saving $5,000 a year at age 25 for her retirement every year until age 65 and gets an average return of 7%.  Jane has a $1 million nest egg by retirement. Joe starts saving $5,000 a year at age 45 for retirement every year until age 65 and also gets an average return of 7%. Joe has $200,000 in his next egg. That 20-year head start gave Jane 5x more money. That’s why learning the basics of personal finance – how to budget, get out of debt, and save so you can get that retirement fund funded in the key early years is so vital.



  • Young adults consume information differently so there’s a delivery challenge when it comes to education: Studies shows that young adults want their financial education delivered in a 21st century way. They want it web-based with robust, interactive tools. And unlike their “I’ll do it myself” parents, these emerging adults want help and guidance.


  • The financial world is geometrically more complex: Part of the reason for the above statistic is that financial literacy is not taught in schools as a core life skill.  Young adults often rely on parents who were brought up in “financially simpler” times and aren’t equipped to help. They are also bombarded by so many more unrealistic media images about what “normal” lives are like.

So, what’s the solution?

If you or someone you love is a Gen X or Gen Y-er… encourage them to self-educate.  Here are five of my favorite personal finance sites – all of which I’ve either written for or read regularly myself:

What about you – any additional resources to recommend to Gen X & Gen Y?

* POST PUBLISHING PS:  A wise woman emailed me to ask why I listed Ramit Sethi’s blog,, as being “for men,” as unlike and this is not a site specifically focused on men.  It’s a great question.. I did it because the books I have co-written have very feminine covers and my current solo work is very clearly focused on women.  As such a number of females have said to me – I like what you say do but my son / brother / husband won’t feel comfortable with your style.  Can you recommend something that might appeal more to men?  As a big fan of Ramit’s, I always recommend his blog & book.   But to be 100% clear, his excellent work is absolutely for both genders!