Millennials and Tax Day

tax concept_presentation_figure_3d_cg6p777627c_thIt’s that time of year again – Tax Day – and even though the economy is improving, it still feels like Uncle Sam is taking a big bite out of our income. We’re all given a few extra days to file and pay this year since Emancipation Day falls on April 15 but nonetheless we recognize the fiscal challenges Americans are still facing.

I remember when one of our sons got his first paycheck for a summer job while he was in high school. He came home with it and said, “Mom, they made a big mistake on my paycheck. It’s way too small.” That was when he learned about all of the deductions that he was responsible to cover before he ever received his salary. It was a far more daunting lesson than the one about the birds and bees!

Millennials today are dealing with much more than taxes and the usual deductions from their compensation. Many also have student loan repayments taken directly from their paychecks due to the heavy educational debts they are still carrying. These loans have set the stage for a variety of responses among Millennials in their outlook about a financial future – and how they structure their budgets.

For 20 million of them, these financial setbacks have brought young adults back home to live after college. Whether being underemployed or actually jobless, taking further studies or saving for a starter home, helping out the family by moving in or looking for more support from them, these boomerang kids are back in the nest. Parents may enjoy their company but hope home is where their adult children can regroup and plan an exit strategy.

And what about you? Tax time is particularly stressful and developing your own personal safety net can help relieve some of those tensions. When you refocus and reframe from a different perspective, you can begin to build resources and a support system to sustain and enhance your life. And if you’re receiving a tax refund this year, use it wisely!

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