Millennials and Money: What You Need to Know
With millennials dominating the market and industry, their habits and behaviors are being closely monitored. Regarding financial handlings, millennials have very distinct quirks that are peculiar to their generation. Above all else, millennials crave convenience. With that said, it comes as no surprise that they’ve devised custom solutions aimed at streamlining monetary affairs. Here are some trends and insights you should know about millennials and money.
Ignorance Isn’t Bliss
Millennials seldom forego opportunities to diversify their financial understandings. When it comes to finances, knowledge is indeed power. Studies reveal that 75 percent of millennials feel confident in their economic decisions. They attribute their self-assurance to their willingness and eagerness to learn. Moreover, a measly eight percent of millennials regard financial matters as impertinent. As more and more millennials continue to hone their expertise, this figure will undoubtedly lessen.
Heavily Reliant On Technology
Given the rise of artificial intelligence, the notion that millennials rely primarily on technology to manage their finances is hardly shocking. In fact, nearly 85 percent of millennials use digital implements to govern their money. Researchers maintain that millennials are so dependent on technology because these tools help them anticipate their financial needs. After all, millennials are more apt to take advice from a mobile device than a person.
Banking Is A Snooze Fest
Millennials demand to be entertained, and as fads continue to come and go, attention spans are growing shorter and shorter. Banking is one concept millennials are attempting to ginger up. According to millennials, banking is inherently boring. As financial institutions begin introducing cutting-edge software, millennials stand a chance to have their interests piqued.
Savings Are Soaring
Fortunately, there’s some good to come out of millennial anomalies. Most millennials were raised by parents from the baby boomer generation and there after, who were taught by their parents about saving money. They had either lived through the Great Depression or suffered the adverse effects of this financial calamity. As such, they were taught the importance of saving when they were growing up. Millennials are also making strong attempts to save like their parents. Nearly 81 percent of millennials make ongoing efforts to save money for the future.
Forethought Is Far-Fetched
Though Generation Y is applauded for their saving habits, their inability to plan negates this positive attribute. Millennials are so inept when it comes to financial planning that 50 percent have to dip into their savings in order to make it paycheck to paycheck. Of those 50 percent, 36 percent admitted to throwing caution to the wind. Though they know this issue could be easily avoided if they consulted last month’s spendings, they’re unwilling to do so. As a result, this one poor decision snowballs into a financial fiasco.
Credit Card Anxiety
A shocking 41 percent of millennials state that they’re scared to use a credit card. Even still, they realize the gravity of not owning one. Fortunately, over 90 percent of millennials have a credit card in their name. If nothing else, they understand that it’ll help them establish credit and, in turn, make them eligible to purchase a car, home, etc.
A Penchant For Entrepreneurship
Regarding financial success, much of Generation Y believes in the efficacy of entrepreneurship. At their core, millennials are money- and power-hungry individuals who relish the idea of working for themselves. Unlike other generations, millennials claim that pursuing entrepreneurial endeavors is the best way to attain job security.
Checks Aren’t A Thing Of The Past
Believe it or not, millennials have not yet abandoned the presumed defunct checkbook. A whopping 87 percent of Generation Y has written a check within the past 90 days. Perhaps the next generation will be the one that disavows this long-lived practice.
Social Media Is King
There’s no stronger bond than the one between millennials and their social media accounts. Millennials often believe everything they read online, and it’s for this reason why they get much of their advice from these digital platforms. Below are some statistics.
- 43 percent use Facebook most often
- 59 percent are active Instagram users
- 80 percent of tweeters are millennials