How Millennials Can Manage Their Finances

Did you know that 78% of millennials in our country are not financially literate? And believe it or not, 80% doesn’t have enough emergency savings to keep them by if something unexpected happens. While 50% is currently overwhelmed by their debts.

But why does it seems that millennials are having a hard time managing their money? According to a survey and report made by the World Bank, there are three things common with people who scored low in financial literacy:

  • 55% of them said that their income can barely cover their expenses
  • 45% of them don’t plan their monthly finances
  • 50% of those who save only put their savings in the bank

So how can us, millennials, properly manage their finances? Here are three tips we can do:


The inability to determine the difference between a good debt from a bad debt can lead to terrible money problems. So what’s the difference between the two?

A good debt can increase in value in the future and can lead to a good credit record. These include investments that will increase in value over time or debts that incurred for your self-improvement. A bad debt, on the other hand, has no return on investment, and the worst is that it depreciates in value over time. One big example of this is loaning a car you can’t afford as vehicles depreciate in value over time.

Keep in mind though those good debts can potentially turn into bad debts over time if left unmanaged. For example, if you bought a new smartphone with your credit card in installment at 0% interest rate for 12 months, but fail to pay your credit card bills promptly, this can lead to incurring high credit card interest. This can also jeopardize your credit health, turning a good debt into a bad one due to bad money management.


Millennials have a lifestyle that is heavily influenced by technology. This is why there is a large difference between how and what we spend on. These are the common things millennials spend their money on:

  • millennials eat out twice a day
  • 34% choose to set aside their spare cash on holidays and vacations
  • 3 in every 10 millennials make purchases at least once a week based on the things they see in social media

So how can millennials smartly spend their money? One of the best ways is to make use of promotions and deals from credit cards that can give great discounts on their purchases or booking.


Unlike what most people believe, a credit card can be used as a great tool to manage one’s finances and cash flow if used correctly. It’s also a great way to build a good credit record which you can later on use in applying for business loans or house loans. However, credit card interest can quickly stack up if you’re not careful enough.

This is why financial advisors often recommend their clients to pay their credit card bills as soon as possible. Another way is to look for a credit card that will not add interests or penalize for late payments.


Just remember that the real key to mastering your finances isn’t just about increasing your cash flow, but managing it. As they say, the way you’ll manage your PHP 12,000 salary is the same way you’ll manage your PHP 120,000, so be wise with how you spend your money.


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