All too often, the advice that millennials receive about their financial situations is so simplistic as to be unhelpful. The most commonly parroted themes revolve around making your morning latte yourself, looking for a second (or third!) job and getting a roommate. The truth is, the situations many millennials find themselves in cannot be overcome by simply cutting back on luxuries and living space. The problem often lies in the large amounts of debt millennials are carrying. Despite being one of the most highly educated generations, with nearly 25 percent of people aged 18 to 35 possessing at least a four-year degree, data taken from the U.S. Census shows that this group makes approximately $4,000 less than people who were the same age in the year 2000. Coupled by the fact that millennials graduating in 2015 reported an average of $35,000 in student loans, not to mention the thousands of dollars owed for credit cards and other consumer debt, it’s no surprise that skipping Starbucks isn’t the panacea it’s advertised to be. Millennials need real solutions and an effective strategy that enables them to not only eliminate their debt, but also build for the future.
Assessing and Prioritizing Your Debts
Having a clear picture of your financial situation is one of the most effective steps in solving a debt problem. It’s also the only way to ensure that solutions work, so this evaluation and organization should be your first step.
The biggest benefit of this method is that it saves you time and interest, as debts are paid off sooner. And once all your debts are paid off, the money you were putting toward those payments can become your savings and investment fund. You can keep putting the same amount away every month to contribute to your future without adjusting your budget. This is especially helpful to millennials, who have to be extra mindful of balancing their current cost of living with the undeniable need to save for the future. But if you need to free up some cash or want to pay off your debt sooner because of exorbitant finance charges or other fees, there are options for refinancing your debt to gain more control over your finances.
Paying down debt is a priority, but there are other things you can do to assuage your current concerns and help you look optimistically toward the future.
Getting into debt to get rid of debt sounds counterintuitive, but there is a distinction between good debt vs. bad debt. Using good debt such as low-rate personal loans to pay off bad debt like high-interest credit cards and student loans can save you money and time. While this solution is relatively unexplored by millennials, it's popularity is increasing as a growing number of online lenders begin offering solutions. For millennials, online lending may be a better choice than traditional sources of loan funds such as banks because of the more stringent credit and income qualifications of conventional institutions. Alternative finance companies are providing new solutions for the financial problems faced by the millennial generation. Using these new services, along with some effective technological tools, can help you redirect your future and make steady gains toward financial stability.
Shifting your high-interest credit card balances to a card that offers 0 percent interest is an excellent way to jump-start your debt payoff. Balance transfers stop your debt from accruing any new interest, usually for a period of three to 18 months, but you will likely have to pay a balance transfer fee, which can range from $5 to five percent of the balance. Without the added interest, you can pay down your balances faster and save yourself a good amount of money. Interest will kick back in once this period ends, however, so you will either have to pay it off before time is up or transfer the remaining balance to another 0 percent card.
While you could literally freeze your credit cards in a block of ice to prevent new charges, card companies are giving consumers the ability to freeze their accounts from authorizing new spending. You can usually do this over the phone or online, and it’s just as simple to unfreeze if you need to use your card again. Some cards have a time limit on this practice, so contact your card issuer to find out how long you can keep your account frozen before it's canceled for non-activity. If the card is canceled, it will appear as a closed account on your credit report, which can lower your credit score.
There are many apps and websites that can help you take better control of your finances. Mint and other budgeting applications can connect to your bank and credit card accounts to give a comprehensive picture of your spending. You can then create a personalized budget and keep track of how well you’re adhering to it. While paying down high interest debt is vital, it's still important to put some money towards savings and investments. Putting $25 to $50 into both your emergency savings and investments every month can give millennials a better sense of control. You can use apps to make periodic transfers from your checking account into your savings and investment accounts. Digit, for instance, analyzes your spending habits to determine when you can best afford to make transfers of $5 to $50 throughout the week. Apps such as Acorns round up the amounts of your purchases to the nearest dollar and send the change to an investment account. You can even transfer these funds to a robo-advisor service that automates your investing decisions, creating a nest egg effortlessly.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Engine by MoneyLion product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Engine by MoneyLion through hyperlinks, from third-party websites, are provided for informational purposes only. While Engine by MoneyLion finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
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Even Financial [email protected]
New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.