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Saving as a Millennial Living with Your Parents

July 5, 2016 By: Great Midwest Bank

millennial living with parents saving money

Don’t look now! The largest generation in the U.S. is quickly becoming adults and in the process, redefining adulthood. Millennials have adapted and endured in a post-recession economy, their social and global values have inspired change in the labor market, and now one-third of Millennials are living in a parent’s home.

Eighteen to 34-year-olds living at home is the new normal; however it has not come without its challenges. Many are saddled with student loans, consumer debt, and a serious lack of savings – both emergency and retirement. The silver lining? Living at home provides some much desired financial breathing room, just when it’s needed most.

So what can a young adult, who’s moving in with their folks, do to kick-start a personal financial revolution? Here are a few tips to help you make the most of your time at home:

Befriend your budget.

Keep track of what goes in and what goes out regularly and realistically. You’ll be able to identify spending habits worth adjusting so you can grow your savings where you need it most.

Get a handle on your student loans and other high-interest debt.

Not unlike a mortgage, you’re in for the long haul when it comes to student debt. Talk to your lender about your repayment options and adjustments, and make sure you can afford what you’re paying each month. If you have credit card debt, work on paying this debt off pretty quickly, so you will have more money to put towards your other goals.

Set pragmatic goals, and plan for them.

How can you best leverage your time at home? Save for a security deposit for your solo space and build an emergency fund to handle life events as they happen. Make compound interest work for you by getting ahead in retirement savings.

Ramp up repayment.

Get ahead of interest on your debt and student loans by breaking up your payments biweekly or adding one additional payment per year.

Check in on the health of your credit.

Knowing more about how credit scores work and having a healthy credit score can put you in a better spot to reach your goals and save you a bundle along the way. Not sure where to start? Try the Credit Score Quiz to boost your credit score knowledge.

Want to learn more about saving to brighten your financial outlook? Check out more #GreatTips from our blog.