If you’re a millennial, you’ve probably heard the usual money advice: save early, spend less, invest smart. But let’s face it—real life is busy, expensive, and unpredictable. Still, there are a few money habits that can quietly sabotage your future if you’re not careful. Here are five of the most common ones to watch out for:
1. Not Taking Saving Seriously
Time is your best financial ally. The earlier you start saving, the more your money can grow. But many millennials still aren’t making the most of it. A 2024 MyBankTracker survey found that less than half of millennials are actively investing, and many keep too much cash on the sidelines. Even just setting up automatic RRSP or TFSA contributions can make a big difference. The 2025 TFSA limit is $7,000—if you can afford it, try to max it out. If your employer offers RRSP matching, don’t leave that free money on the table.
2. Overspending on Small Stuff
It’s easy to justify a $5 coffee or a $15 lunch—until you add it up. Spending just $10 a day on takeout adds up to over $3,500 a year. No one’s saying you can’t treat yourself but tracking those small indulgences can free up serious cash for your goals.
3. Chasing the Wrong Investments
Some millennials avoid investing altogether out of fear. Others jump into high-risk bets hoping to get rich quick. Neither extreme is ideal. A steady, diversified approach—focused on long-term growth—almost always wins. According to a 2024 study by FTSE Russell, young investors who held balanced portfolios were significantly more likely to meet their financial goals than those who speculated.
4. Skipping Insurance
When you’re young and healthy, insurance might feel unnecessary—but accidents, illness, or unexpected life events happen. Disability, critical illness, and even basic life insurance are often surprisingly affordable when you’re under 40. It’s one of those things you hope to never use but are glad to have when life throws a curveball.
5. Not Taking Financial Education Seriously
Too many people still rely on advice from friends or TikTok instead of talking to a professional. A 2024 survey by FP Canada found that 60% of millennials lack confidence in their financial knowledge—and many don’t fully understand terms used by their advisors. Taking the time to learn the basics, or asking for help from a certified financial planner, can go a long way toward building your confidence and your bank account.
Bottom line?
Avoiding these five common mistakes can make a massive difference over time. The earlier you get serious about your money, the sooner it can start working for you—not the other way around.
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