Core Insights - Millennials face significant financial challenges, including managing student loans, housing costs, and inflation, which can lead to common financial mistakes that impact long-term health [1][2] Common Money Mistakes - **Using Retirement Accounts as a Personal Bank**: A prevalent mistake among millennials is treating retirement accounts, such as 401(k)s, as a source of immediate funds. This often results in early withdrawals or loans that undermine future tax-advantaged growth and may incur tax penalties [3][4] - **Credit Paralysis**: Many millennials experience credit paralysis, where they avoid taking action due to fears of poor credit scores. This can limit their financial opportunities, despite the existence of alternative lending options that consider other factors beyond credit scores [6] Solutions to Financial Mistakes - **Get a True Handle on Spending**: Financial advisors recommend that millennials track their spending accurately to understand their financial situation better. Utilizing free services for spending tracking can help manage finances effectively [5] - **Know Your Numbers**: It is advised that millennials should be aware of their financial metrics and not be discouraged by credit scores. A focus on gradual improvement through sound financial practices can lead to better outcomes over time [7]