How to Build Wealth: Don't Hold on to Too Much Cash

Millennials, in general, are avoiding the financial markets and instead keeping more of their money in bank accounts despite historically low interest rates. Just 26 percent of people under 30 invest in stocks, according to a 2015 survey by Bankrate.com. The key reasons can be attributed to the shift in generational behavior: distrust, flexibility, and lack of experience with inflation. While this shift in behavior is understandable, it leads to a deeply flawed approach to wealth building.