Nobody’s perfect – and that includes the millennial generation.

Don’t get me wrong – many millennial households are making strides toward building substantial wealth. They’re saving at least 20% of their paychecks, investing in 401(k) accounts, and keeping debt levels low. Yet some, despite good educations and solid careers, fall into financial pitfalls which can be challenging to overcome.

As a financial advisor who has faced many of these financial challenges firsthand, here are ten of the most common money mistakes I’ve observed:

Failing to Consider the Financial Consequences of Student Loans

Before taking on more and more rounds of student debt, assess whether the chosen degree justifies the expense in terms of future earning potential

Postponing Saving

Waiting to save until expenses increase with age can hinder financial progress. It’s essential to live beneath your means and prioritize savings, especially with any additional income

Ignoring the Financial Consequences of an Expensive Wedding

Here comes the bill! While weddings are significant, overspending can lead to financial strain. Consider the long-term impact of wedding expenses on financial stability, and spend reasonably where you can.

Having an Inadequate or Nonexistent ‘Rainy Day Fund’

A dedicated emergency fund covering three to six months’ living expenses is crucial to avoid financial setbacks.

Having Too Many Credit Cards

While credit cards offer benefits, they require discipline to avoid accumulating debt. Limit the number of cards and prioritize paying off balances in full each month.

Buying Too Much Car

Opt for a vehicle that meets needs rather than desires, as overspending on a car can hinder financial goals.  Spending less on a car provides valuable paths to save the difference.

Not Saving Enough for Retirement

With pensions becoming rare, it’s crucial to prioritize retirement savings early to help ensure financial security later in life.  This is one of many areas where a financial advisor is handy.

Children, But No Wills

Having a will is essential for married couples, especially those with children, to ensure final wishes are fulfilled and guardians are named.


By avoiding these common money mistakes and prioritizing financial planning, millennials can set themselves up for long-term financial independence.  And while there on numerous other challenges you may face, this is where the right planning help can benefit you.

Questions? Contact our team at Flagship Asset Services to learn how we can help.