In today's episode, producer Jon Gay is in for RJ King.  He and Lou Melone are joined by Certified Financial Planner Branden Carney to talk about financial planning for those under 30.

Financial education is not often focused on those between the ages of 18 and 30, despite the fact that this age range can include some of the most consequential financial moments of your life - from buying a house and getting married to having kids and more! Often, those under 30 are simply told "do this or else."

A lack of experience, when combined with a rapid rate of change, can sink a young person financially.  This is why it's best to create a financial plan.  Also, we go back to behavioral investing.  Not only are circumstances conspiring against you under 30, biology is too!

Functional MRI (FMRI) studies show that when a young person is thinking about their future self, the brain behaves as if it's thinking about a completely different person.   It disassociates that "future" you with the "current" you.  Lou explains.

Branden talks about younger folks using the word "time."   Time is a luxury they think they have.  There's also herding and optimism, which may lead to a sense of invincibility, or not needing to worry about money. 

Where are younger millennials and Gen Z getting information?  Well, largely from social media.  Most financial advice marketing is targeted toward folks that are much older.  This is a trend that needs to change.  So does the fallacy that a million dollars is some magic number for retirement.

We also touch on young entrepreneurs who may be focused on the short term, and naive investors who are hoping to strike it rich by buying the right stocks.  There are major pitfalls to both.

The best thing is to work with a financial advisor or CFP that can create a personalized plan for you early, that you can stick to.

In our next episode we will cover real life horror stories of bad financial behavior.

Resources:

Lou Melone's book, "Unpack Your Financial Baggage:" https://www.amazon.com/Unpack-Your-Financial-Baggage-Misconceptions/dp/1948237776

Melone Private Wealth Website: https://www.meloneprivatewealth.com/

D Business Magazine Website: https://www.dbusiness.com/