My nephew recently was accepted into several universities and we are all so excited for him. College is such a transformative time—making friends, exploring new things and figuring out life. When we spoke not long ago, he confessed that he’s overwhelmed because he hasn’t started a business or made his first million dollars yet. At 18, he’s already stressed about not hitting those milestones.
He’s been obsessed about creating a product or launching something online to become a multimillionaire by 21. I was stunned to hear the pressure he’s putting on himself. When I was his age, my biggest concern was scraping together gas money to hit the beach with friends—not dreaming up million-dollar ideas.
This is not uncommon these days. When I chat with my adult children and other young professionals, they often talk about feeling pressure to “make it big” early, thanks in part to social media platforms such as TikTok, Instagram and YouTube. Everyone is flaunting their wins and sharing advice on how to strike it rich, but barely anyone is posting about their failures. It’s a highlight reel, not the full story.
The reality is sobering. According to Adobe, nearly one in four people qualifies as a social media influencer. But NeoReach, an influencer marketing software solution that large brands use to run influencer marketing campaigns, reports that almost half of them make $15,000 or less per year and only 15% earn more than $100,000 annually.
Success stories are inspiring, but they’re not as common as many would like you to believe.
So how do we guide our kids through this maze of influencers and outlandish ambitions? It all starts with perspective—and a solid foundation in financial literacy. My stepson is in the finance program at Northeast High School, but this coursework should be required in every high school in America. If kids learned that saving $100 a month in a Roth IRA could turn into millions over time, it might ease some of that pressure. Of course, convincing them to wait 40 years for those results is another challenge entirely.
Making mistakes, especially financial ones, is part of growing up. My advice is to start with the basics. Spend less than you earn and build an emergency fund with six months' worth of living expenses—covering food, shelter and transportation—and set it aside in a savings account. Start investing in your employer’s retirement plan and contribute to an IRA or Roth IRA. Make small intentional decisions that will turn into big results down the road. Life isn’t about rushing to millionaire status. It’s about building meaningful experiences and achieving long-term goals, one step at a time.
Sean Goodrich is a CFP® for Raymond James through Goodrich Wealth Planning. He can be reached at sean.goodrich@raymondjames.com
