How Do Millennials Manage Their Money?
Did you know that millennials earn less than their parents did at the same age? While it’s no secret that the cost of living is considerably more than it was thirty years ago, millennials still face far greater financial struggles than previous generations. So how do they manage their money?
Money and the Millennial Generation
Every generation before has had its own set of unique challenges, and future generations will have theirs, but millennials may be the most financially-challenged generation yet. Today’s young people face enormous education costs (specifically tertiary education), historically low wages and a financial future that is far from secure - it’s so insecure that 70% of millennials started saving from the age of 22! These financial concerns have borne an era of money-conscious, frugal young adults that are leading the pack in money management...
Smartphones, Smart Money
There is an app for almost everything, including tracking money expenses! Smartphones take budgeting to a whole new level and help millennials monitor their every financial move. Banking apps allow millennials to manage their money and transfer between accounts, as well as provides them with the opportunity to invest in various types of savings accounts or investments.
Pinching Pennies Where it Counts
When it comes to bargains, millennials are like bloodhounds - finding deals is what they do! They take great care to read product reviews and specifications and invest a considerable amount of time in sourcing prices from various locations for the things they want to buy. Checking their budget is a must before any purchase, and they aren’t the loyal customers their parents were: the cheapest price is usually the one that gets their hard-earned cash.
A Generation of Hustlers
As the lowest-earning generation to date, it’s no wonder millennials will work hard at sourcing income to subsidise what they get paid by their primary jobs. Acquiring an additional source of income also protects them in the instance that they lose their main job, and allows them to save more. Many millennials do side jobs like babysitting, selling beauty products online, and maintenance work.
Cash vs Credit
More and more millennials are using credit facilities to subsidise their own money, be it through overdrafts or credit cards. A growing trend also shows that millennials prefer using cards or digital payment methods instead of carrying cash, as it prevents overspending and makes managing their money easier. Plus, many banks offer reward systems that many millennials utilise, helping them get more from of their financial providers.
“I’ll Just Take an Uber…”
Unlike older generations who prided themselves on getting their license and their own car, the millennial generation prefers transport facilities like Uber, trains, buses and more. Not only has this resulted in a global slowing of car sales, but it has even seen a decline in the number of young people obtaining their driving license! However, public transport systems are considerably cheaper than filling up with petrol, maintenance costs, and insurance premiums - costs that come with owning a vehicle - and provides another opportunity for millennials to cut costs.