The Necessity of Financial Planning for Millennials

Abstract

This research project provides an analysis of some of the harmful financial situations that Millennials will experience throughout their lifetime due to several societal modifications. These situations include, Social Security depletion, the increase in student loan debt, underemployment rates rising, and Millennials' behavioral traits, and will all be examined more in depth to provide a solution to the issue. Millennials need to take preventative action in order to avoid suffering financially in the later stage oftheir lives. This research project offers a solution to the major financial issues that the Millennial generation is facing. The solution includes various financial products and explains how certain products can be leveraged so that a Millennial can live a financially stable life. The solution also includes effective investment vehicles, along with basic investment knowledge, that Millennials should be aware of or familiarize themselves with. An investment portfolio is also included to illustrate how certain financial products will create a safety net throughout the lifetime of a Millennial that will protect her from the risks her generation is known to have. Limitations to this project are that not all financial decisions that Millennials will make will be the same and cannot be fully predicted. Millennials being such a young generation also poses limitations to the research available on the subject. The purpose of this project is to highlight the financial risks that affect this generation and to illustrate how financial products can serve as a way to decrease some of those risks and provide Millennials with the knowledge needed to properly invest and save their money for their futures.