Fellow millennials, this is a PSA: When it comes to career and money advice, parents have an untold number of opinions, mostly based on what they have done or would like their friends to know you are doing. I’m here to say don’t listen to them.
I’m sure they’re well-meaning and super smart, but chances are their views on housing, investing, university and saving just won’t be applicable to your life now (unless they’re, say, a CPA — then you should take their advice).
Look at the economic state we’re living through because of Boomers: Stagnant wages! $54 billion in student loan debt! A housing shortage because God forbid that much-needed affordable apartment complex block a 50-something’s view!
But beyond those generational shortcomings, your parents’ advice is also limited to their experiences and knowledge (and in some cases, their political affiliations). They could be too conservative with their investments, pay unneeded and egregious fees, or have outdated expectations of the way careers and finances work in 2018.
Someone who was able to buy a house for $194,000 in 1990, see a 14.9 per cent rate on a term deposit, and didn’t grapple with $50,000 in student loan debt at graduation is not someone who has the answers to help guide you now.
Instead, you can get better advice online, in books from financial professionals, or even online platforms such as Raiz.
More importantly, you need to do what’s right for you, in your current money situation. If you’re living in a city where rent eats up more than half of your take home pay, buying a house at age 25 likely isn’t an option as it was for some people in an earlier generation.
That doesn’t make it wrong or irresponsible to rent - it’s a byproduct of the current financial framework we’re living in. We need to be truthful with ourselves about this framework when we’re establishing goals and working toward a better future.
This is all to say, parents mean well, but what worked for them will not work for you now. Tell them you appreciate their advice, but at the end of the day you need to make your own financial decisions.