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Money·7 min read

Future-Proof Your Finances | Skimm Money Special Edition

For Gen Zers and millennials, it's all about finding a balance between splurging and saving. Get the latest tips and resources to help you.
November 19, 2024
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It's not "doom spending." It's redefining the dream.

Prices are up. Student loan relief is likely off the table. And Social Security may not exist by the time millennials retire. With such a bleak financial outlook, you would think people would be stashing their cash in preparation for the Great Depression 2.0. But, if you believe the headlines, American society is collectively leaning into something dubbed “doom spending” — aka leaning into the “little treat” economy as a way to combat anxiety.

Pause for a second. The condemnations of this trend feels suspiciously similar to the latte-shaming of the 2010’s—this tired idea that we were sabotaging our golden years with every cappuccino we ordered. Yes, some millennials and Gen Zers are less than optimistic about their financial futures, now that buying a home is harder and saving for retirement can feel like climbing Everest. And maybe in response some are spending money they might once have saved. But does having a higher spend/save ratio mean they are giving up or being irresponsible? What if they are intentionally adapting their financial habits to a landscape that looks nothing like we were told to prepare for?

What does that look like? Gen Z is building careers with an eye on a different kind of retirement, while Millennials save for “adult gap years.” Neither generation is giving up on financial security; they’re balancing spending and saving so that they don’t forgo experiences they may not have again. For them, splurging on those suede booties or booking that weekend getaway doesn’t feel like a moral failing. A sustainable financial mindset isn’t about perfection; it’s about making a budget that allows you to live well now and later.

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Quick Hits

Help Me Have a Tough Money Convo

Q: My husband’s parents are well off and really generous. They’ve contributed to our children’s 529 plans and often cover expenses during joint family vacations. Is it ever acceptable to ask about how they’ll allocate their money after they pass? I know it’s morbid, but knowing this could help us plan for the future, too.

-Not Prying, Just Planning

Featured Expert

Katherine Fox

Katherine Fox - Certified financial planner and founder of Sunnybranch Wealth.

You should absolutely discuss end-of-life and estate plans with his parents. Too many families feel uncomfortable talking about death and money. Still, you don’t want to come across as greedy, so avoid diving straight in with, "Hey, what's the plan for your money after you die?" Instead, focus early conversations on questions like: "Do you have preferences for end-of-life medical directives?" and "Have you thought about your will and estate plan?" (Related: Don’t Avoid the End-of-Life Talk With Your Parents)

Prepare yourself for resistance to these topics. Not everyone is comfortable thinking about their own mortality. Continue gently asking, and emphasize that your motive isn’t the money itself, but to better understand their wishes. (Related: The Great Wealth Transfer: Faucet or Fire Hose?)

One note of caution: I fully support planning for an inheritance, but I never advise planning on an inheritance. Even if your husband's parents are worth $10 million, and they say it's all going to your family, you shouldn't stop saving and planning for your future. Nothing is guaranteed. (Related: Managing an Inheritance: When Mom’s Money Becomes Yours)

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A. Stay-at-home parents

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C. People with aging parents

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The answer: D. No matter where you’re at now, having the right coverage will help protect your loved ones in the future. Not sure where to start? Amica can help. They know life insurance isn’t one-size-fits-all, so they offer customized coverage options that fit your specific needs. And they’ve got thousands of five-star reviews on Trustpilot to prove it. Learn more about their empathy-first approach.

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