Money Management Tips Every Millennial Should Know
In 2018, Black spending power was valued at $1.2 trillion, showing just how undeniably powerful the Black dollar is.
That same report also states that "African-American consumers are an important population for smart brands that want to grow market share and brand preference…brands can't afford to lose favor or traction with this segment without potential negative impact." With so many corporations looking to Black people and Black culture as a market opportunity - imagine if it was flipped. Imagine how much more powerful the Black dollar could become if we reinvested some of that buying power back into our individual finances and communities. One way to do this is by #bankingblack.
Meet Teri Williams, President and Chief Operations Officer of OneUnited Bank - the largest Black-owned bank in the United States. Through her work at OneUnited, Teri is committed to combating challenges and embracing the opportunities that come with educating and being relatable to people who look like her about the power of #bankingblack. "People start banking at the large banks because that's what they're exposed to," says Teri. "They don't realize there is a whole network of Black banks, credit banks, and community banks that better reflect their values."
Teri spoke to xoNecole about critical money management tips that can give Black millennials a step up when it comes to their financial literacy and building a strong financial base and future.
Check out her tips below!
1. Set up an automatic savings plan.
Though savings can be a bit of a struggle when you're trying to pay bills and other monthly expenses on time, paying yourself first is a MUST! "If the money goes into your pocket first, it's almost impossible to save," says Teri.
Try setting up your paychecks so that a certain amount is automatically deducted and moved into a savings account through direct deposit. "It doesn't matter the amount, it's the idea of taking money out of your paycheck and putting it into a savings account so you don't touch it," Teri explains.
You'll be able to look up a year (or more) from now and be amazed about how much you can spend. Making this process automatic will leave you little room to forget each pay period.
2. Adjust your student loan payments so you can still save.
For many of us paying back student loans is a major financial burden. However, Teri warns, "If you're paying student loans and not saving, you're sacrificing your future for your past."
She urges millennials to find ways to speak to lenders to negotiate payment plans that are consistent with one's current income. Many student loanees don't realize they don't have to pay the bill that's been sent. Speak to lending partners directly to see if there is flexibility in payment amount and payment scheduling. This will help make sure that though you're repaying a significant amount, saving towards your financial future monthly is also possible.
Courtesy of Teri Williams
3. Focus on buying (or investing) in real estate.
For many of us, getting out of the urban and low-income neighborhoods we're from can be seen as a rite of passage or a sign that "we've made it", but Teri thinks otherwise. "We look at our communities and say we want to get out of here, but instead we should be investing."
Gentrification isn't only affecting communities from a physical perspective, but it also affects potential wealth creation for Blacks and Hispanics. In order to fix this, it's important to "not turn your back on the community and run." She explains, "I'm someone who has been in banking in low-to-moderate income communities for the last twenty years. What I'm seeing on the ground is that our communities are being gentrified. We have been thinking about our communities from the past as opposed to the future."
Figure out where the real estate investing opportunities are in your community. "That dilapidated home down the street or that small condo you feel like is too small for your needs is going to be worth a whole lot more in the future." Now is the time to buy, while properties are still somewhat affordable.
This is also where banking at Black or community-oriented institutions is valuable. As a certified community development financial institution, the majority of OneUnited's lending is in low to moderate income Black and Hispanic communities. This is in comparison to other large banking institutions, where only 1-2% of the loans go to Black people. The odds of receiving a loan from a Black-owned bank like OneUnited is much higher. That's why depositing in a bank that looks out for the best interests of the community is crucial.
4. Don’t neglect your credit health.
Having bad credit isn't permanent, so it should be something that you're actively trying to fix and restore to good standing. Though this tip is pretty standard in the financial literacy world, Teri wants millennials to remember just how important an asset it is for one's financial future. If you're looking to rent an apartment, buy a car, or even buy a home - bad credit can significantly impact your ability to. Specifically, OneUnited offers a "How To Rebuild Credit" program that teaches customers safe ways to work on rebuilding their credit score.
If you're looking to use a credit card as part of your credit rebuilding, consider a secured credit card that reports to the major credit bureaus. Beware of prepaid cards with monthly fees that don't report to the credit bureau. Overall, working with a banking institution that offers financial education resources is important if you're in need of credit repair help.
Courtesy of Teri Williams
5. Create your retirement strategy early.
No matter how far away it is, planning for one's retirement future should always be prioritized. If you're working in the traditional corporate 9-5 structure, when choosing a place to work, always ask about the employer's 401k plan and contributions. It's always a plus if an employer contributes or matches contributions. According to Teri, it's basically "free money" and "helps you build retirement funds without money going into your pocket."
For those millennials who work in the "gig economy", which is also known as freelancing, short-term employment, self-employment or any other non-traditional job type - one of the things you're losing beyond health insurance and benefits is an automatic contribution to social security. As social security is an important part of one's retirement plan architecture, making sure you're contributing to your social security fund is critical.
Finding a career you're passionate is also another major key to the health of our retirement financial strategy. "The reality is that most people are going to work longer than they expect," says Teri. "Look for a career where you are paid your value, and would enjoy getting up and doing the work. Long-term, that will allow you to want to stay working longer which will help you with retirement."
Teri's excited about the future of Black banking and the impact Black millenials will have on the industry. "We need to start using our money more purposely. Bank Black. Buy Black. Build Black. Trust each other. Come together…" With confidence, she adds, "We're taught that we as a community are a failure. We're not taught the tremendous accomplishments within our community and contributions we have made to this country.
"We are not going to be defined by our liabilities. We are going to be defined by our assets."
Featured image by Getty Images
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Rana Campbell is a Princeton University graduate, storyteller, content marketing strategist, and the founder and host of Dreams In Drive - a weekly podcast that teaches you how to take your dreams from PARK to DRIVE. She loves teaching others how to use their life stories to inspire action within oneself and others. Connect with her on Instagram @rainshineluv or @dreamsindrive.
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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A Therapist Breaks Down The Internet's Fixation On The Black Cat-Golden Retriever Dynamic
In the realm of love and relationships, there's a growing interest in the idea of opposites attracting. This concept is gaining traction on platforms like TikTok, where users explore how different personality types interact in romantic partnerships. One popular comparison is between the "golden retriever" and "black cat" archetypes.
According to Urban Dictionary, the golden retriever, typically portrayed by men, embodies a relaxed and friendly demeanor, making relationship maintenance seem effortless. These individuals are described as easygoing, patient, loyal, socially adept, and optimistic. On TikTok, many women are intrigued by the prospect of finding partners with these qualities.
In contrast, the black cat, often represented by women, leans towards introversion and independence. They're mysterious, quiet, and introspective, preferring to be pursued rather than doing "the chasing" in relationships.
@annakrstna Replying to @BeckyAmi part II coming soon❤️ #femmefatale #blackcat #blackcatenergy #dating #marriage #datingadvice #princesstreatment #feminine #feminineenergy #relationship #sprinklesprinkle #celebrity #femininenergy #love
This dichotomy reflects the anxious-avoidant attachment dynamics in psychology (pursuer-distancer cycle), where one partner seeks closeness (golden retriever) while the other values autonomy (black cat).
The Black Cat Golden Retriever Archetypes & Attachment Styles
Attachment theory suggests that early caregiving experiences shape our attachment styles, influencing how we relate to others. Anxious individuals seek reassurance, while avoidant individuals prioritize independence. However, not every instance of the black cat/golden retriever dynamic indicates underlying insecurities. Individuals can embody these personas without necessarily being insecure or exhibiting unhealthy attachment patterns.
For instance, a golden retriever's desire for closeness may come from a secure attachment style, rooted in self-worth and trust in others. Conversely, a black cat's preference for autonomy doesn't always indicate avoidance; they may simply value their independence, and it's relatively easy for them to connect and disconnect when needed. Understanding these dynamics requires personalized individual/couples assessment, ideally with a licensed therapist.
The Black Cat Golden Retriever Roles in Relationship Success
A prevailing notion in this discussion that's sparked a lot of conversation is the idea that when a woman takes on the role of the golden retriever in a relationship with a black cat partner, the dynamic is more likely to fail. (I've experienced this firsthand, even in my own past relationships, and I've seen it play out in my own life.) Conversely, when the roles are reversed, the relationship tends to thrive. But why does this happen?
Historically, men have been socialized to take on the role of the pursuer, while women are expected to be more passive recipients of romantic advances. From a biological standpoint, some researchers argue that evolutionary instincts may play a role in shaping mating behaviors. Evolutionary psychology suggests that men may be inclined to pursue potential mates to maximize their reproductive success. This perspective suggests that men may have evolved to seek out partners and compete for their attention and affection.
@annakrstna Replying to @Tina Kaur #love #dreamgirl #beauty #relationship #dating #datingadvice #femmefatale #feminineenergy #desire #obsession #darkpsychology #sprinklesprinkle #femininity #psychology #selflove
Additionally, societal expectations and cultural norms can heavily influence gender roles and relationship dynamics. From a young age, boys may be socialized to take initiative, assert themselves, and pursue their romantic interests actively. On the other hand, girls may be encouraged to adopt more passive roles, waiting for suitors to express interest or make romantic gestures.
As much as there's a lot of conversation about gendered expectations and societal norms, it's crucial to recognize that these expectations aren't universally applicable. Not all individuals adhere to traditional gender norms, and people express a wide array of behaviors and preferences in romantic relationships. Research indicates that attitudes towards pursuit and courtship have evolved over time and differ across cultures.
In today's society, there's a growing recognition of the significance of mutual consent, communication, and reciprocity in romantic relationships. Many individuals, irrespective of gender, prioritize egalitarian principles and seek partnerships founded on mutual respect, understanding, and collaborative decision-making.
The Black Cat & The Problem With 'Acting' Secure in Dating
Delving deeper, there's a growing conversation surrounding the distinction between acting secure and authentically embodying security in relationships. True security stems from a deep-rooted sense of self-assurance and a healthy understanding of one's needs and boundaries. Secure individuals don't feel compelled to mask their vulnerabilities or play games to attract a partner; they attract healthy relationships by being genuine and self-assured.
Contrastingly, attempting to mimic secure behavior without addressing underlying insecurities can lead to relational pitfalls. Pretending to be nonchalant or aloof may initially attract a partner, but it ultimately creates a façade that crumbles under the weight of emotional triggers and unresolved attachment wounds.
Authenticity and vulnerability form the bedrock of secure relationships, fostering trust and mutual understanding.
Most importantly, whether you identify as a black cat or a golden retriever in relationships, it's best to find someone who genuinely loves you for who you are. Connect with people who appreciate you instead of engaging in games or "acting secure," because even secure individuals have vulnerabilities and weaknesses. People need to see the real you to truly connect with you.
Transitioning from acting secure to being secure requires introspection and self-awareness. Here are some tangible tips to cultivate genuine security in relationships:
1. Reframe Your Beliefs About Love and Relationships:
Challenge any negative beliefs or misconceptions you may hold about love and relationships. Recognize that healthy relationships are built on mutual respect, trust, and compatibility, rather than scarcity or desperation.
Cultivate a mindset of abundance, believing that there are plenty of opportunities for meaningful connections and fulfilling partnerships; you just have to be the person you want to attract and refrain from entertaining anything less.
2. Develop Self-Confidence:
Invest in building your self-confidence and self-worth independent of external validation or romantic relationships. Foster a sense of independence and autonomy in your life. Develop interests, goals, and aspirations that are separate from your romantic relationships, and invest in your personal growth and development. Engage in activities and hobbies that bring you joy and fulfillment, and don’t abandon those hobbies just because you met someone new or you’re in a new relationship.
3. Set Realistic Expectations:
Avoid placing unrealistic expectations on yourself or your partner in relationships. Recognize that no relationship is perfect, and both partners will inevitably experience challenges and setbacks. Instead of striving for perfection, focus on building a strong foundation of mutual respect, understanding, and communication. Embrace the ups and downs of relationships as opportunities for growth and learning.
4. Emotional Regulation:
Develop healthy coping mechanisms for managing emotions and navigating conflict constructively. Prioritize self-care and cultivate resilience in the face of challenges.
5. Practice Patience and Acceptance:
Understand that finding a compatible partner and building a fulfilling relationship takes time and patience. Avoid rushing into relationships out of desperation or fear of being alone. Trust in the process and have faith that the right person will come into your life at the right time. Practice acceptance of yourself and others, recognizing that everyone has their own journey and timeline when it comes to love and relationships.
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Featured image by Amber N Ford/Getty Images