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Generation Z and millennial Canadians are facing financial issues ranging from out-of-reach home ownership to income uncertainty, making money management seem impossible for some.

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This trend made the author of The Wealthy Barber, David Chilton, decide to fully update the personal finance guide for today’s young Canadians, more than 30 years since he first published it. Chilton said he was hearing the same questions from his children’s friends and his own friends’ children.

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“I was seeing the confusion because of all of the information coming at them and the distress because of the challenges of the high cost of living. It’s tougher now to save money than it has ever been.”

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Financial Post: What are some of the key challenges younger Canadians face today that previous generations did not?

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David Chilton: When you look at what people are spending and their income, the basic arithmetic shows you just how tough it is to save. Most people’s personal inflation rate has run hotter than the reported consumer price index. You’ve also got a world of marketing that is so much more effective because of the algorithms that know how to exploit our weaknesses. And now you can just tap or click to make a purchase.

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On top of that, young people are dealing with information overload from (social media). It’s difficult to discern what advice makes sense and what doesn’t, who is looking out for your best interest and who is not. At the end of the day, no matter if it’s tough or not, you’re still going to retire at some point and somehow you have to save money.

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FP: What steps can younger Canadians take to tackle these challenges this coming year?

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DC: One of the first steps any young person in their 20s and 30s should take is to chronicle all of their spending over a three-month period. This may sound old-fashioned, but the research proves it’s more impactful if you do that by hand than using an app.

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The second step is to pay yourself first. This is more important now than ever. With costs today being so much higher, if you rely on budgeting alone, you won’t save. You have to take 10 per cent to 15 per cent off the top of your paycheque as quickly as you can and then go from there.

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I also think in these tight times people should be more open to taking on a side gig. I’m not talking about driving for Uber, but taking a hobby or something you enjoy and finding a way to monetize it.

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Next, sift through the noise. Check the background of who you are relying on for advice. Do they have the appropriate training and experience? It’s also important to remember that good financial planning … is very basic. People think it is very complex and the financial industry — including influencers — have a vested interest in making it seem complex. If we bring this down to buying index funds, focusing long term, staying away from credit card debt and using TFSAs (tax-free savings accounts) and RRSPs (registered retirement savings plans), it’s not that tricky.