5 Ways To Close Your Financial Knowledge Gap
5 Ways To Close Your Financial Knowledge Gap
Serah Louis Sat, December 18, 2021, 10:01 AM·5 min read
60% of millennials and Gen Z are ‘constantly stressed’ about money — With Christmas around the corner and federal student loans switching on next month, money stress is reaching a peak for many young people — and it’s been bad for a while.
Nearly three in four Americans under 40 say managing their finances is taking a toll on their mental health, according to a new survey from Laurel Road, KeyBank’s digital banking platform. Over 60% feel “constantly stressed.”
“Financial stress and anxiety are incredibly common feelings among Gen Z and millennials,” says Alyssa Schaefer, general manager and chief experience officer at Laurel Road. “We see that cultivating ‘mental wealth’ is clearly a priority for many individuals.”
That means building more financial knowledge and setting up a financial plan so you can feel confident about the future. Here are five ways to achieve those goals:
1. Beat your debt into shape
While you may not be able to eliminate your student debt or credit card debt anytime soon, you can relieve a lot of pressure by getting them in the most manageable shape possible.
If you have a federal student loan, the government offers income-driven repayment plans that allow borrowers to make more affordable payments, based on what they earn. After you make 20 or 25 years of regular payments under an income-driven plan, your remaining debt will be forgiven.
Another simple money-saving step is to enroll in autopay, because signing up for automatic deposits will qualify you for a 0.25% interest rate reduction when payments resume.
On the other hand, if you have a private loan, your best bet could be refinancing with one of today’s cheap interest rates. Assuming you have a decent credit score, refinancing could help you pay off your loan more quickly and save you a huge amount in interest.
The same strategy can work for any high-interest debt you’re carrying, like the kind on credit cards. Refinancing to a lower rate could see you free yourself years sooner.
2. Create an actual budget
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https://finance.yahoo.com/news/millennials-gen-z-suffering-mental-162500676.html