Millennial Money: Make your funds move at the speed of life

Millennial Money: Make your funds move at the speed of life

A few tips for young adults when it comes to budgeting and financing

Change is constant — especially when you’re young. Chances are you’ll cycle through a few moves, job changes and romantic relationships as you establish your life as a young adult.

Each development in these three big areas of your life brings financial challenges, too. You might need a new wardrobe for the dream job you just landed. Dating isn’t cheap and moving is almost always expensive, no matter how far you go. Here are ways to manage the cost of change.

Housing changes

Moving is a logistical and financial challenge, but you can mitigate some of the stress and expense.

“Having a plan is always key,” says Lacey Langford, an accredited financial counsellor. “Think through the steps of your move and the costs that go along with it.” The earlier you start planning, the more time you have to research, minimize and save for expenses you identify.

Try out a few easy ways to save money:

COMPARE MOVERS. Prices vary among moving companies. Some will require more movers to haul your stuff or higher hourly rates, which can drive up the price. Check the prices of three to five before choosing.

THINK BEYOND DIY MOVING TRUCKS. Hauling stuff on your own? Rather than using one of the go-to truck rental companies, check out rental car companies. See whether you can save money by selling or donating nonessential items and moving only what fits in a rental van. Depending on your move, you could save hundreds.

SHOP USED. Rather than buying a new sofa or area rug, check out local antique shops or secondhand stores. You may be able to save money and get a unique item at the same time.

READ MORE: Don’t let Instagram envy get you into debt

READ MORE: Canadian millennials expect to live better than parents in retirement: study

Relationship changes

Relationship changes could mean your and your partner’s money is moving closer together — or further apart. Whether you’re shacking up or breaking up, the key to managing finances is communication.

JOINING FINANCES. First, have a deep, honest conversation. Talk about your money history, including things like how your parents managed their money, your current financial standing and your future financial goals, advises wealth psychology expert Kathleen Burns Kingsbury.

“Having this conversation does three things: First, it breaks the money silence. Second, it helps you understand each other’s money mindsets, and third, you get buy-in on how you’re going to pay bills and take on financial challenges,” Burns Kingsbury says.

Next, plan how you want to handle your joint finances. Burns Kingsbury suggests checking in every six months or so to keep the dialogue going and ensure the plan is working for both of you.

SEPARATING FINANCES. Breaking up has added complexity when you’ve commingled finances. But a level head — and outside help if needed — can make it less painful.

Sit down and talk through each account you share, Burns Kingsbury advises. Come to an agreement about how you’ll handle things like co-signed loans and authorized usership on accounts. Consider bringing in a third-party mediator to facilitate the conversation if you can’t do it amicably. A trusted friend or financial coach could be helpful.

A new job

Job changes can advance your career and bump up your pay. But there may be financial trade-offs.

“A new job can be exciting, but take the time to not make an impulsive decision,” says Thomas Nitzsche, communications lead at Money Management International, a credit counselling agency.

Think through potential costs to see if you’ll come out ahead, including:

BENEFITS. Consider total compensation. The new job might bring a bump in pay, but lesser benefits may offset it. For instance, if the medical coverage isn’t as robust as your former employer’s, you may end up forking over more for co-pays and prescriptions.

LIFESTYLE CHANGES. A new job can change your day-to-day life drastically, including what you wear, how you eat and how much time you spend travelling.

Consider how a new commute could cost you — in both money and time. The less time you have to make dinner after work, for example, the more you may end up eating out. Also, think about whether you need a new wardrobe. Run through your budget and make sure you’ve accounted for expenses that could pop up.

YOUR RETIREMENT ACCOUNT. Don’t leave your retirement account languishing with your former employer. You’ll likely want to roll it into your new employer’s plan. But check the fees and investment options that come with it; you might be better off with a second retirement account to contribute to after you get the company match.

This column was provided to The Associated Press by the personal finance website NerdWallet.

Sean Pyles Of Nerdwallet, The Associated Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A COVID-19 exposure has been confirmed at Black Mountain Elementary in Kelowna Saturday, Jan. 23, 2021. (Google Image)
Another COVID-19 exposure confirmed at Kelowna school

Interior Health confirmed an exposure at Black Mountain Elementary School Saturday

Members of BCEHS Station 343 in Lake Country receive a donation of treats and wine from the community in December. (Contributed)
‘Unexpected and heartwarming’: Okanagan community supports paramedics

Cards, discounts, treats, more given to Lake Country paramedics in sign of support

Okanagan Indian Band Chief Byron Louis has served as the band’s chief since his first of six electoral wins in 1991. (File photo)
Okanagan Indian Band seeks nominations for upcoming election

A new OKIB chief and council will be elected March 30, 2021

An individual at Rutland Senior Secondary school has tested positive for COVID-19. (Aman Parhar/Omineca Express)
Individual at Kelowna school tests positive for COVID-19

Authorities say they are self-isolating at home with support from local health teams

Flooding has become a reality for many communities in the Okanagan Valley as the region faces more extreme weather storms, blamed on the impact of climate change. (File photo)
Okanagan high target for spring flooding

Higher snowpack and mild winter precipitation levels raise concerns for Canada’s insurance industry

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

(Hal Brindley - Dreamstime)
Enderby farmers caught between coyotes and bylaw tickets

The Smith family is stuck in a Catch-22 between protecting their livestock and incurring noise complaints

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

The North Okanagan Naturalists' Club completed its annual swan and eagle counts Sunday, Jan. 17, 2021. (Claude Rioux - NONC photo)
North Okanagan bird count shows decrease in swan and eagle numbers

Trumpeter swans were down 61 per cent from last year’s count; eagles down 14 per cent

Lake Country firefighters helped deliver a healthy newborn baby Thursday, Jan. 21, 2020. (Pixabay)
Lake Country firefighters help deliver baby boy

Firefighters from the Winfield hall assisted with the birth of a healthy newborn Thursday morning

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Skaha Middle School
Arrest made in indecent acts near South Okanagan schools

A 32-year-old man was arrested and released on strict conditions, say police

FILE - In this Feb. 14, 2017, file photo, Oklahoma State Rep. Justin Humphrey prepares to speak at the State Capitol in Oklahoma City. A mythical, ape-like creature that has captured the imagination of adventurers for decades has now become the target of Rep. Justin Humphrey. Humphrey, a Republican House member has introduced a bill that would create a Bigfoot hunting season, He says issuing a state hunting license and tag could help boost tourism. (Steve Gooch/The Oklahoman via AP, File)
Oklahoma lawmaker proposes ‘Bigfoot’ hunting season

A Republican House member has introduced a bill that would create a Bigfoot hunting season

Most Read