If you are a parent of a millennial, you will probably want to assist them on the path to being financially secure. In general, many people of the age range of 18 to 34 are uncertain and lacking in confidence as to where they stand financially. On average, only 43 percent of millennial's feel financially secure, according to a Harris Poll for Northwestern Mutual that was conducted in January 2016.

1. What to Teach Millennial's about Finance
If you are a parent of a millennial, you will probably want to assist them on the path to being
financially secure. In general, many people of the age range of 18 to 34 are uncertain and lacking
in confidence as to where they stand financially. On average, only 43 percent of millennials feel
financially secure, according to a Harris Poll for Northwestern Mutual that was conducted in
January 2016.
The best way to prepare your millennial child about finance is to teach them about certain
money-related topics. Instill the following tips in millennials to help them.
The Truth about an Inheritance:
Many millennials mistakenly believe that their inheritance from parents will help them
financially in their futures. However, in reality, an inheritance is usually not enough. Even if the
individual believes they will receive a “significant” inheritance, on average, 90 percent of
parents of millennials say their inheritance won’t be significant. This is largely due to people
living longer and retirement being stretched further as a result. Additionally, many millennials
can expect to live to be around 99 years old, which means they will need a substantial amount of
money on which to live from the time they retire up to the rest of their lives.

2. Be straightforward and let your millennial know exactly what your situation is regarding the
money you will be leaving to them. You should also stress the importance of them creating their
own legacy, which can give them a better sense of self-worth.
Discuss a Prenuptial Agreement:
When your millennial is ready to get married, you might want to discuss the option of a
prenuptial agreement. Although there is a stigma regarding this topic, it can help to keep the
finances of a couple separate in the event that their marriage doesn’t last. You should tell your
millennial child that you are worried that any money they have might be lost to a future ex-
spouse and that a prenup is a good way for them to be protected.
Talk About Finances Early and Often:
Discuss the topic of finances with your millennial child early on and often. Generally, you
should make this a priority at least once per year and address any concerns you may have about
your child’s finances. You can also refer them to a financial advisor to perform an annual review
of their financial plan. This can greatly help your millennial going toward the future. Talking can
help, especially as millennials often consider their parents their most trusted financial source.
Discuss the Issue of Property:
A top financial priority for millennials is to own a property of their own. Many millennials
believe that buying a home is a huge component of financial planning that allows them to
accumulate assets. However, on average, it can take 24 years to save money on a deposit on a
home. While this is certainly a worthwhile priority, it’s not the only thing millennials should be
saving toward. Additionally, with the purchase of a home comes the issue of paying a mortgage
and having enough money for their eventual retirement. Buying a home should be secondary to
saving money for a good nest egg toward retirement.
Yorkville Advisors, LLC is a privately owned hedge fund sponsor.