These 4 money habits can help you feel more secure, says this financial advisor

It's a tough world right now for young people trying to save money. Grocery prices and rents keep rising, and even fairly financially stable Gen Zers can feel hopeless and worse off than they truly are, thanks to " money dysmorphia."
Many are "just trying to keep their head above water," Kate Norris, a certified financial planner at Sun Life, told Business Insider.
"Sometimes at the end of the month, you've paid all the bills, the groceries, and there's not a lot left over," she said. "It is tough, I get it."
Norris said there is a widespread lack of financial literacy among all generations, and not just Gen Z.
When it comes to young people figuring out their future, she has these four key pieces of advice.
1. Pay yourself first
Norris said her first piece of advice is to set up automatic payments to a savings account at the start of each month.
"Once it's out of the account, you're less tempted to spend those surpluses," she said.
"Don't overthink it — just get the money somewhere. You might need it in an emergency sooner than later."
2. Monitor your budget
Norris said people of all ages can lose track of the money inflows and outflows to their accounts, which is why budgeting is essential.
"You're like, oh, I budget $500 for groceries, and then it turns out it's $800, well, then we can't really do any cashflow planning or budgeting to know what's left over," she said.
Many banks have services to help you budget, Norris said, and categorize your expenses, which can help you feel more in control.
"Taking time to actually look at those three to six months of expenses and saying, Where is the money going? What am I spending?" Norris said. "Once you've created that habit early on, I think it sticks with you."
3. No unsustainable monthly payments
Norris said it's a good idea to be very aware of consumer debt rather than just seeing it as a number you're disconnected from.
Please help BI improve our Business, Tech, and Innovation coverage by sharing a bit about your role — it will help us tailor content that matters most to people like you.
What is your job title? (1 of 2)
Entry level position
Project manager
Management
Senior management
Executive management
Student
Self-employed
Retired
Other
Continue
By providing this information, you agree that Business Insider may use this data to improve your site experience and for targeted advertising. By continuing you agree that you accept the Terms of Service and Privacy Policy .
People are drowning in car debt, for example, not realizing how much interest they are paying over time.
"It's not just about your monthly payment — what is the debt? What does that debt mean for your net worth?" Norris said. "If you actually break it down, you could be spending $10,000 in that time period on interest."
It's better to assess what the debt looks like over time for your long-term situation, rather than thinking about the individual monthly payments, Norris said.
4. Start small
Many people struggle with delayed rewards, which can make saving money so difficult.
"It's like we can't see that future we want, so we gratify ourselves now with what's in front of us," Norris said. "Or you set up Apple Pay and credit cards on your phone and it's just like tap, tap, tap."
This is how people live beyond their means and fall further into debt, she said.
You can take small steps toward being more frugal, and it starts with seeing your net worth grow, even if it's just by $100 per month.
"This magic of compound interest and compounding growth says that if you just put $100 away today, that could be a huge amount at retirement," Norris said. "Versus if you start in 20 years from now, when you might have to save £1,000 a month."
If you make these small changes, you can spend the rest of your paycheck "guilt-free," Norris said.
"I think a lot of people are feeling a little bit in despair with the world and the interest rate and the economy. But our grandparents went through this, and it's a cycle, so keep pushing forward."

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Hill

8 hours ago

• The Hill

Baby Boomers: 1 in 3 say they'll never sell their home, according to survey

(NewsNation) — Over one-third of baby boomers who own their homes claim they will never sell them, according to a Redfin-commissioned survey. The survey also found that an additional 30% say they will at least hold on to their home for a decade, but are willing to sell. Those who are older (the Silent Generation) are even less likely to sell their homes, with 44.6% saying they never would. Younger homeowners, however, are on the opposite side of the spectrum. 21% of millennials/Gen Zers and 25% of Gen Xers said they would never sell their homes. According to Redfin, these results could reflect the fact that many baby boomers don't have the financial incentive that is typically needed to sell a home. Also, many older homeowners have lived in the same home for a while and prefer to stay where they are. Around 67% of the baby boomers in the study had lived in their homes for at least 16 years. Fifty-five percent of baby boomers said they like their homes and have no reason to move, which is the most common reason they stayed. Other common reasons included: Housing prices are up around 40% since before the COVID-19 pandemic, according to Redfin, with mortgage rates nearing 7%. That's up from around 4% before the pandemic. Currently, 31% of baby boomers said they wouldn't be able to own a home in a neighborhood similar to theirs in today's economy. This reasoning is also making it harder for younger Americans to find homes. 88% of homes owned by Baby Boomers are single-family homes, which also might not be large enough to fit an entire family. Only 5% are condos and 4% are townhomes. An analysis by Redfin in 2024 showed that baby boomers are much more likely to have larger homes, despite most millennials and Gen Z homeowners having minor children living at home, compared to only 4% of Baby Boomers. Redfin Chief Economist Daryl Fairweather said, 'With baby boomers opting to age in place rather than sell, it's challenging for younger buyers to find affordable options that fit their lifestyle. But it's worth noting that even though many older Americans say they're not planning to sell their homes, many are likely to eventually part ways as it becomes harder to live independently and/or keep up with home maintenance.' The study also showed that around 25% of millennials and Gen Zers won't be buying a home anytime soon because they can't afford one where they want to live. Other reasons include: At least supply is up, with nearly 500,000 more home sellers than buyers in the current market, according to Redfin. Redfin economists believe that home prices will decline by 1% by the end of 2025. This survey was commissioned by Redfin and conducted by Ipsos in May. Around 4,000 residents were included in the survey.

Business Insider

12 hours ago

• Business Insider

Does Canada have UBI? Everything you need to know about the country's basic income programs.

As more basic income pilots and programs launch in the United States, Canada is following suit. Recently, politicians in Canada have considered how to implement no-strings-attached money initiatives, especially as many citizens lost jobs during the pandemic and the cost of living has increased. These discussions have drawn on studies and trials dating back nearly a century. As dozens of basic income programs in the United States spread, some leading policy experts have discussed whether these initiatives could be extended to a universal level. Other countries with basic income programs and experiments include Brazil, China, Germany, and India. Advocates for universal basic income — which offers recurring cash payments to all individuals in a population, regardless of their socioeconomic status — say Canada has the resources to create a program that covers every citizen. While universal income would be on a universal scale across a population, basic income programs typically target lower-income or vulnerable populations. Organizations in some provinces are testing what basic income could look like on a local level through guaranteed basic income pilots — recurring cash payments geared toward specific groups, like vulnerable populations. While many Canadian politicians across the political spectrum support basic income, some argue that these programs are costly to the local economy. Support from residents, meanwhile, varies. About 60% of Canadians support guaranteed basic income, while 37% support universal basic income, according to a poll published in 2022 by the market research firm Narrative Research. To be sure, cash payments can't replace full-time income or lift everyone out of poverty, but it can give many lower-income residents more opportunities to engage with the economy, said Sheila Regehr, a founding member and chairperson of the Basic Income Canada Network, an organization working to expand basic income access across the country. "From a fiscally conservative perspective, that little bit of investment could save a ton of money down the road and get better results for everything," Regehr told Business Insider, referring to the initial expense and potential benefits of basic income. "This idea we had several generations ago to get a good job, stay in a company for life, that doesn't happen anymore." Shortly after the pandemic began, talks about the efficacy of basic income in Canada accelerated. In 2020, 50 senators sent a letter to Prime Minister Justin Trudeau, Deputy Prime Minister Chrystia Freeland, and Finance Minister Bill Morneau commending them for their actions and calling for a minimum basic income. And in the last federal election in 2021, 189 candidates — representing 46% of Canada's electoral districts — pledged to support basic income. Canada's Parliamentary Budget Officer found that between 2022 and 2023, a universal basic income would cost $87.6 billion but would cut poverty by at least 40% in nearly every province; the cost of poverty totals about $80 billion each year, the PBO estimates. "We certainly have the capacity, there is no question that we do," Regehr said. In 2021, Ontario Sen. Kim Pate introduced Bill S-233 and Winnipeg MP Leah Gazan introduced Bill C-233, creating the country's first national framework for a guaranteed livable basic income for people over the age of 17. Both bills are now under consideration in the Senate. Canada, which has an Old Age Security pension, already has a version of basic income for older residents called the Guaranteed Income Supplement. The GIS is a monthly payment distributed to low-income pensioners aged 65 and older. The maximum monthly payment is $1,087 for someone who is single, divorced, or widowed. "Getting a government check has no stigma to it here; it's just something that happens," Regehr said. Canada's experiments with basic income Basic income experiments in Canada are not new. Talk of implementing a basic income dates back to the 1930s in Alberta, though the first major experiment took place in Manitoba starting in 1974. That project, called Mincome, was studied after completion, and researchers found that participants — who received $3,800, $4,800, or $5,800 a year through 1979 — on the whole continued to work and had higher secondary school graduation rates. Researchers also found that there was an 8.5% drop in hospitalizations for participants at the program's completion. Four decades later, Ontario launched one of the biggest pilots in Canadian history, the Ontario Basic Income Pilot Project. The pilot, whose participants were mostly employed and lower-income, gave up to $16,989 annually for single participants aged 18 to 64 and $24,027 for couples. Ontario Premier Doug Ford's government canceled the pilot just 10 months after payments were first distributed. Reasons for the cancellation included high costs and indications that the program didn't help people contribute enough to the economy. Still, interviews with participants after the pilot found that basic income helped them better afford necessities than traditional welfare payments and assisted in long-term financial planning. A 2020 Canadian Centre for Economic Analysis study determined that a basic income could create 600,000 jobs and contribute $80 billion to Canada's economy in five years, potentially generating $400 billion in additional GDP during that period. Current basic income programs in Canada Various basic income and cash transfer pilots are ongoing, including in Newfoundland and Labrador for people between the ages of 60 and 64. Quebec has a basic income of $1,309 monthly for people with limited income, according to Quebec's government website. Prince Edward Island, which recently hosted a conference on basic income, started its T-BIG pilot — the Targeted Basic Income Guarantee — in 2021 for over 600 people. The program gives cash to participants to bring them within 85% of the federal poverty level. Meanwhile, a few provinces, including Saskatchewan, have debated adopting a sovereign wealth fund that pays dividends similar to the Alaska Permanent Fund. In 2021, the British Columbia Basic Income Panel created 65 recommendations for implementing targeted basic income programs for people with disabilities, young Canadians aging out of government care, and women escaping violence. However, the panel recommended overhauling certain social programs and suggested against a general basic income. "We have concluded that moving to a system around a basic income for all as its main pillar is not the most just policy option," the report reads. "The needs of people in this society are too diverse to be effectively answered simply with a cheque from the government." The province's New Leaf Experiment has seen promising results. In New Leaf's first rendition, launched in 2018, which gave $7,500 total upfront to 50 people experiencing homelessness with a control group of 65 people, participants did not increase spending on goods like drugs or alcohol and spent 99 fewer days unhoused, according to a research note on the pilot's outcomes. The pilot also helped participants with financial literacy and getting them proper IDs and paperwork. Results are forthcoming for another iteration, which started in 2022. "The findings are that they work more hours, they get paid more per hour, and a lot of the individuals we're working with are accessing training," said Amber Dyce, CEO of Foundations For Social Change, a charitable organization that runs the New Leaf pilot. "By getting the cash transfer, they have more breathing room. They're trying to empower themselves to become more financially stable through employment."

Miami Herald

13 hours ago

• Miami Herald

The Unexpected Generations Paying Top Dollar for Auto Loans

Experian reported at the end of 2024 that monthly average car payments were $742 for new vehicles and $545 for used ones, but new data from auto refinancing company Caribou has shown that the amounts that different generations pay vary more than you might think. Caribou's study included Gen Z, born between 1997 and 2012, millennials, born from 1981 to 1996, Gen X, born between 1965 and 1980, and baby boomers, born from 1946 to 1964. In its report, Caribou cited Gen Z as spending the largest share of their income on car payments, but millennials were listed as having bigger average loan balances at $38,600. Gen Z was listed as spending the least monthly income on vehicle payments, and baby boomers had the highest average credit score at 735. According to Caribou, Gen Z drivers are most likely to be behind the wheel of a Honda Civic, with an average loan amount of $32,069 and having a 14.05% APR. Millennials were cited as frequently driving a Chevrolet Silverado 1500 and taking on loans with a 12.44% APR. Their higher loan balances can be attributed to the colliding costs of education, housing, and family. Gen X is described as carrying the most significant original loan amounts due to a fondness for larger trucks like the Ford F-150, but these higher starting costs meant the demographic was more likely to achieve the highest monthly savings after refinancing at $147. Next to Gen Z, baby boomers took out the lowest loans at $35,844 on average, and they carried the lowest APR of 11.91%, aligning with millennials in their preference for the Chevrolet Silverado 1500. Caribou evaluated what these generations' auto loans looked like after refinancing by accessing its customers with good credit scores and steady incomes who refinanced their auto loans in 2024. Gen X scored the highest average refinance monthly savings of $147, with millennials following at $143, and baby boomers and Gen Z logging $131 and $126 average monthly refinance savings, respectively. Gen X and baby boomers were tied for the lowest monthly refinance APR at 8.39%, while millennials landed at 8.42%, and Gen Z at 8.50%. Across the board, annual percentage rate (APR) reductions ranged from 3.51 to 5.56 percentage points. "Car payments are one of the biggest monthly expenses for millions of Americans, and for too long, people have assumed they're stuck with the rate they got at the dealership. Our data shows that drivers of all ages can unlock real savings by refinancing. This isn't just some money hack; it's a necessity for many households," said Simon Goodall, CEO of Caribou. While refinancing might pose upfront costs that increase your overall loan cost, Caribou's data shows that generations from baby boomers to Gen Z can benefit from the practice. Higher original loan balances mean larger payments earlier in a borrowing term, but they can also lead to greater savings through refinancing. Caribou's report also illustrates that Gen Z drivers face unique affordability challenges with their pattern of spending larger shares of their monthly income on car payments despite lower loan amounts. Baby boomers exhibited strength in multiple categories on account of their stronger average credit scores. Copyright 2025 The Arena Group, Inc. All Rights Reserved.