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Money Moves that Matter: A Financial Survival Guide for Millennials and Zennials

May 29, 2025
Young couple reviewing their budget

For many, managing personal finances has always been a challenge, but Millennials and Zennials (Gen Z), face unique difficulties. From rising living costs to student loan debt and the ever-evolving job market, these generations are struggling with today’s expenses while trying to save for tomorrow.

Whether you're navigating student loans, working a side hustle, or trying to save for the future, finding financial clarity during a challenging economic time can help prepare you for what’s ahead. Here’s a simple guide designed to help Millennials and Zennials protect what they’ve built. 

Financial Anxiety and Top Stressors Among Today’s Young Adults

Millennials and Zennials are facing some of the most complex financial challenges of this era. Millennials came of age or entered the workforce during the Great Recession of 2008 and carry heavy burdens of student debt. Zennials are grappling with a competitive job market, inflated college costs, and everyday living expenses. These adults are facing financial challenges along with stress, anxiety, and uncertainty about their long-term financial stability.

Top financial stressors among today’s young adults

  • Managing debt
  • Job market
  • Future financial security

Smart Moves to Strengthen Your Finances

Making smart financial moves right now is more important than ever – especially for Millennials and Zennials who encounter student loan debt, rising living costs, and future goals like homeownership and retirement. To help you stay afloat, start with small intentional steps that will strengthen your finances. This will lay the groundwork for building long-term financial stability and independence. 

1. Follow a Spending Plan

A spending plan (also known as a budget) is your best tool to stay in control of your finances and regularly track your money. Consider trying one of these unconventional saving practices - a creative way to build better money habits, reduce financial stress, and make real progress toward your goals – on your own terms.

2. Leverage Low to No Fee Banking

Switch to a local credit union that offers checking accounts with no minimum balance requirements or monthly service fees. Swapping a credit card that charges an annual fee for a low rate, no annual fee option is a savvy move too. Leveraging no-fee banking can lead to significant savings over time.

3. Set an Emergency Savings Goal 

Think about short-term goals you’re hoping to accomplish within the next year. Setting aside $10-25 from each paycheck and putting it into a separate savings account, money market or Term Share Certificate (or CD) can help you build a cushion that gives you peace of mind and protection from unexpected setbacks. Setting short-term goals, such as saving $500 as a first milestone helps make the process feel achievable. To make saving effortless, automate the transfer from your checking into your savings account.

4. Invest in Your Future Self

High rates of inflation don’t just affect necessities like gas and food; it can put a dent in your savings and future, too. Consider incorporating strategies to mitigate losses like rebalancing or diversifying your investment portfolio. Work on building new skills for a side hustle, take classes to sharpen existing ones, or find other ways to create opportunities to keep up with the costs. Start small and remain steady.

Stay Informed: Learn about financial products, market trends, and money management strategies. Use online resources, read blogs, and seek advice from professionals.

Young african american with laptop computer managing budget and expenses bills at home.

 

Dealing with Debt: Build a Financial Wellness Plan 

Millennials and Zennials are reshaping the definition of financial success. This shift is driven by rising costs of living, mounting debt, and an evolving perspective on financial stability. They’re reframing an approach to financial health by focusing on wellness strategies that reduce stress and anxiety, and improve their overall well-being.

Building a financial wellness plan doesn’t have to mean giving up everything you enjoy – it starts with making small intentional shifts in how you approach saving and spending. Minor changes to your daily financial routine will create smart habits that lead to reduced spending, more saving, and an overall healthier financial future.

1. Be More Thrifty 

Find alternative ways to reduce costs on necessities such as switching to non-brand items, shopping sales, and using coupons. Asking your local grocery store what day they mark down items is a super savvy way to score discounts on meats, bread, and veggies. Buy things in bulk that make sense (paper products, soaps, detergents, non-perishable goods) and other items that have a longer shelf life. Skip grocery delivery services and opt for pick-up instead.

2. Re-Strategize Loan Repayments

Instead of focusing only on the biggest balance or highest interest rate, look at what’s manageable right now. Consider consolidation options to streamline bills and lower payments. If needed, switch to minimum payments and funnel extra money into savings until things stabilize. For managing student loan debt, look into refinancing options or other affordable repayment plans.

3. Pause Major Purchases (Unless You Absolutely Have To)

A new car, a vacation, the latest smartphone or device can wait. Focus on preserving cash and only spending on essentials. If you must make a large purchase, compare financing options or if you’re able to, plan the purchase for later to give you more time to save.

4. Don’t Tap into Long-Term Savings

Avoid dipping into your retirement or investment accounts. Early withdrawals often come with penalties and missed growth opportunities. 

African american young couple in love runs with dog in the park in the summer and smiles

Elevate Your Credit Score

For Millennials and Zennials, building, improving, and understanding how credit works and using it responsibly are key steps toward achieving financial independence. Whether you’re starting from scratch, repairing a few blemishes, or strengthening your score to achieve a financial milestone, having a good credit score can make a big difference for your financial health.

1. Use Credit and Loans Responsibly

Don’t borrow more than you can repay or take on a loan payment that stretches your budget thin. Before you take on a new loan, use this amortization calculator to find an affordable payment.

2. Keep Your Credit Utilization Low

Credit utilization shows how much of your available credit you’re using. Using too much or too little credit can affect your credit score. Aim to keep your credit utilization below 30% of your credit limit. For example, if your credit limit is $1,000, try to keep your balance around $300.

3. Make On-time and Regular Payments

Late or missed payments can damage your credit score. If you’re having trouble making or keeping up with payments, contact the loan provider to see what other options may be available for you.

4. Don’t Close Old Credit Cards

Closing credit cards can negatively impact your credit score due to decreased available credit, increased credit utilization, and potentially reduced credit history length. This can make it harder to qualify for new loans or credit cards in the future. 


Learn more: To learn more ways to build, improve, or repair financial blemishes, check out ‘Simply Steps for Maintaining Good Credit’.


Find Your Financial Footing at A Smart Place to Bank

Times of economic uncertainty, inflated costs, and recession fears can feel daunting and stressful, but they’re also an opportunity to build resilience and better financial habits. By staying grounded in your goals, spending with intention, and leveraging the tools and resources available to you, you can weather financial uncertainty and come out stronger on the other side.

Looking for support? You don’t have to do it alone. Peach State is here to help! We offer free financial counseling on a variety of financial topics and situations including loans, budgeting, saving, debt management, and more. Whether you’re trying to budget better, manage debt, or explore financial relief options, with the right strategy, your financial future remains bright. Connect with one of our friendly team members today for guidance that can help you make confident decisions.

 

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