Five Costly Money Mistakes Millennials Make

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.

The financial decisions you make today will determine your future wealth, income and happiness. It’s important to take your time and avoid these five common blunders:

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 an investment program with 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. Investing Without Advice
Too many people still rely on advice from friends or TikTok instead of talking to a professional.

It has long been said that, ‘if a person represents themselves in a court of law that they have a fool for a client!’ The same is true for your investments, i.e. those assets that you have worked hard to acquire. Seek the guidance of a good investment advisor. You are probably good at what you do, so why not entrust your investments to someone who is good at what they do.

A financial planner will work with you to develop a plan that will enable you to reach your long-term financial goals. If you do not already have long-term financial goals then your advisor can help you determine what might be appropriate, given your unique situation.

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.

Call me today to set up an appointment to review your goals and objectives and to ensure that your current investment approach will allow you to fulfill your goals.

Also, visit my business website (myfinancialsolutions.ca) for additional financial information on insurance, retirement/estate planning, investments and whole host of other financial topics.

Robert Hughes,
P. Eng., CFSB, CFP, CPCA