The huge money mistake most millennials make

Personal Finance

Whether kids should learn about personal finance at school or at home, though, they are the ones who are left clueless about how to manage money.

Kids need to know what you have to do to earn money and, once you get it, what you can do with it.

The “three S’s” — saving, spending and sharing — are things adults do every day. “We go to work, we earn money,” Murset said. “We save some, we share some with charity and we spend the rest.”

Typical Americans spend and share, according to Murset. “Americans are generous people,” he said. Americans are also known for enthusiastic spending. But savings always gets short shrift.

Next is the issue of money that’s becoming more abstract. Increasingly, fewer people carry cash. “It’s getting to be a bigger problem,” Murset said. “Money is invisible to kids; to them, it’s numbers on a screen.”

That disconnect with the value of money can push millennials to make irresponsible financial decisions, such as taking money out of a retirement plan since it doesn’t seem as concrete as cash.

Last is millennials’ own lack of understanding how investing works.

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