Whether it came from a family member, social media influencer or certified professional, if youB次元官网网址檙e a millennial or gen Z whoB次元官网网址檚 been burned by bad financial advice in the past year, you can take some solace in knowing youB次元官网网址檙e not alone.

When it comes to the kind of bad advice young people seem to be particularly susceptible to, advice-only certified financial planner Jason Heath has noticed an uptick in three major areas B次元官网网址� real estate, self-directed investing and education.

B次元官网网址淚 think a lot of young people especially take this B次元官网网址榝ear of missing out approachB次元官网网址� when it comes to their money, which might drive them to buy property they canB次元官网网址檛 afford because people tell them (the price is) always going up,B次元官网网址� he said.

B次元官网网址淥r, they might have tried to get into the day trading thing during the pandemic, going all-in on a few stocks instead of holding a bunch of different investments so that they werenB次元官网网址檛 overly exposed to risk.B次元官网网址�

Nearly 70 per cent of readers recently surveyed by financial lifestyle magazine MoneySense said theyB次元官网网址檝e lost money as a result of financial advice.

However, perhaps the most relatable issue for young Canadians is impractically approaching their financial planning education in an era of high interest rates and mounting student loan debt B次元官网网址� something Dula Deb, a fourth-year social work student at Carleton University in Ottawa, knows well.

Though Deb had always made an effort to manage her finances responsibly and ensure a relatively steady income to independently support her education, she finished high school with a limited amount of money management know-how. As such, she turned to her older sister for guidance, who had already completed her degree by the time Deb was starting at Carleton.

B次元官网网址淪he kind of advised me that, even if I had good scholarships and was working 30 hours a week, I should still take out my loans even if I didnB次元官网网址檛 need them yet, since theyB次元官网网址檇 be helpful throughout (my degree) and take away the stress of being in a bad financial situation if something happened that affected (my income),B次元官网网址� she said.

Though this may not have seemed like bad advice to many B次元官网网址� especially given the ability to build a better credit score by taking out student debt and eventually paying it off on time B次元官网网址� by virtue of DebB次元官网网址檚 limited financial literacy at the time, she took out almost $6,000 in loans without the knowledge required to responsibly use them.

B次元官网网址淚 went from being a big money hoarder and feeling guilty for spending $20 on a shirt, to spending it really irresponsibly, especially when I was under a lot of emotional distress from school or other stuff.B次元官网网址�

Heath noted that though bad financial advice can come from anyone and anywhere, financial advice given by people who donB次元官网网址檛 have the training to B次元官网网址渕eet people where theyB次元官网网址檙e atB次元官网网址� can be especially problematic B次元官网网址� particularly when looking at advice given by family members and online resources.

B次元官网网址淥f course, thereB次元官网网址檚 the chance that someone who isnB次元官网网址檛 professionally qualified and is giving financial advice could be totally factually wrong, or with online resources like social media influencers, be trying to sell you something,B次元官网网址� he said.

B次元官网网址淏ut I think what I would caution people most about when it comes to taking advice from friends or family especially is that even if a family memberB次元官网网址檚 advice is good and sound, it might be good and sound for them or for somebody else, but not for you.B次元官网网址�

As such, Heath noted the importance of thinking through the non-professionalB次元官网网址檚 perspective, given they donB次元官网网址檛 have the same training and approach a professional might have.

B次元官网网址淚 think, in my case, my sister probably assumed that I would know how to handle all of these loans, and how to think about debt,B次元官网网址� said Deb, B次元官网网址渁nd even though I know where I went wrong now, I probably needed that extra explanation back then to avoid some of the mistakes I made.B次元官网网址�

However, Heath also acknowledged the potential for shortcomings among professionals, too, and emphasized the importance of remaining vigilant regardless of where the advice was coming from.

B次元官网网址淚 would say that one of the biggest yellow flags in spotting bad financial advice is if you donB次元官网网址檛 understand what theyB次元官网网址檙e saying, even after asking for clarification,B次元官网网址� he said.

B次元官网网址淏ut beyond that, if something sounds too good to be true, it probably is, as thereB次元官网网址檚 not really a lot of shortcuts to financial success B次元官网网址� itB次元官网网址檚 normally a slow-moving process when done right.B次元官网网址�

B次元官网网址淭his can definitely happen even with a certified financial planner,B次元官网网址� added Heath, B次元官网网址渟o itB次元官网网址檚 always important to do your research and compare sources.B次元官网网址�

Nevertheless, DebB次元官网网址檚 experiences have encouraged her to seek out professional advice for the first time in her university career in order to round out her new approach to personal finance.

B次元官网网址淭his whole situation has taught me how to actually manage my money in a way thatB次元官网网址檚 realistic instead of falling on the extreme end of spending or saving,B次元官网网址� she said, B次元官网网址渁nd IB次元官网网址檓 excited to see where these changes will take me.B次元官网网址�

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