New books aims to help younger generations gain control of their finances

Overspent at Christmas? Credit card bill through the roof? It’s time to regain control of your finances - yet Gen Z and millennials may have to take a different path from their parents.

So says Charlotte Jessop, personal finance educator, social media star, blogger and author, who has aimed her new guide, The Modern Money Manifesto, at younger generations who are having trouble navigating their finances.

Many feel they have no chance of getting on the property ladder, can’t see an end to university debt or the high cost of living, and live in a world of work where opportunities of high-flying careers seem to be diminishing. They may have to let go of the traditional life path, she says.

“In my parents’ (baby boomers) generation, the norm was that you had a job, you bought a house, had a couple of kids, worked hard and retired, whereas now it is harder than ever so we have to be a bit more proactive in some of these decisions.”

Jessop, 37, saved like mad as a maths teacher and managed to buy her first house with her (now ex) husband in Norfolk in England before she hit 30 but found things had to change when she had children (she has two, aged nine and seven).

They both started working part-time and sharing childcare because it left them with more disposable income than if they’d been working full-time with childcare costs, she recalls.

“When I was on maternity leave with my youngest, I started a business (a blog) talking about finance online and sharing the things I’d learned and the websites that I found were saving me money and grew a following around that.”

The blog, Looking After Your Pennies, chronicled her financial learning as she began to look at her finances differently. She now has a thriving YouTube channel, nearly 19,000 followers on her Instagram account, and a TikTok page.

Her new skills enabled her to create additional income and, through saving like mad and living frugally, she managed to afford to take her family on a trip around the world, with newfound freedom, income, time and deep reflection on life goals.

Here she offers millennials and Gen Zs some timely tips on regaining control of their finances.

Manage debt through different strategies

“A lot of people have debt in multiple places. It might be on credit cards and a loan. If you’re looking to get out of that debt, recognise how much that debt is and the interest rate you are paying on that and then follow some strategies.”

Debt snowball

“This is where you try to focus on paying off your smallest debt. So let’s say you owe £250 on your credit card and that is the smallest debt you owe. Make sure you’re paying all the minimum payments on all the other debts you have and if you have any extra money you will put it towards your smallest debt.

“The beauty of that is you should pay off that small debt quite quickly, which will keep you motivated. 

"Then you work on the next smallest one, which is how you get that snowball effect. As you pay off those debts, you have more money to pay off the next one.”

Avalanche

This is where you focus on paying off the debt with the highest interest rate first, while paying the minimum on other debts. Once the highest interest debt is paid off, move to the next highest.”

Consider moving your debt

You might consider transferring the debt to a lender who is charging a lower interest rate or even no interest rate for a set period, or just consolidating your debt so you have a personal loan instead of multiple credit cards, which can be a positive strategy, she agrees.

“A lot of that is going to come down to your mental capacity to look into that and figure it out," she said  urging people to seek help from support services if they are struggling with that idea.

Try to bring in more money

“You can either cut back on your spending, which is probably going to mean some sacrifices along the way, or try to increase your income.

“This could mean looking for another job or seeking a promotion, or making sure your investments are having a good interest rate. It might mean increasing your hours or starting a business.

“But the only real way to protect your current lifestyle and increase the availability of cash to achieve your bigger goals is to increase the money that you have coming in.

“You might have to retrain, but it’s possible. Look at what’s available to you and think about training in a slightly different area which might open doors for you.”

Take little opportunities to make ends meet

“At the beginning, I made sure everything I bought I was getting cash back on. I did things like market research opportunities online, where I’d do a survey and they’d give me £50 for my time.

“I became a mystery shopper, where I’d walk around a supermarket, take photos, write a report and they’d give me money for that. You can find these opportunities online.”

Be property smart

If your goal is to buy a property, don’t think you have to do it with a romantic partner - you could buy with a friend or a sibling, she suggests.

“You could also look at shared ownership, owning a smaller percentage of a property. Whereas in previous generations you just put down your 10% deposit and bought a house, now we need to develop a slightly more creative solution for getting on the housing ladder.”

Focus on a specific goal

“Be really clear on what your goal is, because it’s easy to coast through life and go, ‘I want to buy a property, but it would also be nice to go away’. The most significant change you can make is to focus on your goal and make everything else around that feed into that goal.

“For instance, if you want to buy a house you might need to save some more money, you might look for somewhere cheaper to buy, or to increase the amount of money you’re earning, which might be through a new job.”

Seek investments

“Start young. I was talking to 14 and 15-year-old students the other day who have 50-plus years before they retire, and it would take them as little as £70 a month for the next 50 years to make them over £1 million on the stock market, given an historically average plan. So starting young is crucial.”

Tax-free Isas are a good place to start, she recommends.

Take pensions early with every company you work for, she advises, and keep tabs on all the pensions you accumulate through your career, a collection of small pots could result in something much bigger.

The Modern Money Manifesto: The No-Nonsense Guide To Boosting Your Finances by Charlotte Jessop is published by Bedford Square Publishers. Available now.