The following is a guest post authored by Jessica Cooper.
Born from the 1980s to the turn of the century, Millennials are careful with their money, but unlike their baby boomer parents, they're had to manage their money in tough economic times. Many of them put off marriage because they can't cope with the expense of a wedding - they also can't bear to be seen to be doing anything in half measures.
They're Doing the Best They Can
There are mixed opinions about who these millennials really are. They actually take quite a bit of flak. Some see them as young people who have found it difficult to break free from their parents while others see them as managing the difficult financial challenges typical to the times they're living in as commendable. They see millennials as those who are at least taking effective steps to find a path toward a more secure financial future.
Their Tech Knowledge Opens other Doors
For all the hassle that millennials take, one thing you can't criticize them for and that's their tech knowledge. They are seriously clued up on technology, and this unusual knowledge has allowed them to secure some pretty well-paying jobs.
It's also created an interest in the stock market and millennials are signing up with brokers platforms like CMC Markets. They make use of the broker's advanced technology to make some serious side-money. How cool it is for them to suddenly have more money available to pay off those college fees of yesteryear and to get their finances back under control.
It's safe to say that technology is ingrained into the millennial culture, and they've been able to create their own jobs and save the money they earn. Millennials set aside money for a rainy day and make use of advanced apps and tools such as Digit and Acorns to keep track of their spending habits as well as their investments. More than 70% of millennials make use of mobile banking and you can go into the banks on any day, and you won't find many millennials queued there.
Millennials have different financial goals than their parents, and while this could be the result of the 2008 economic downturn, they have managed to make smart financial decisions. They'll have to in the future because their baby boomer parents are going to be passing down assets worth trillions of dollars to them. Millennials won't waste the money for sure, but they do believe in finding fun ways to use the money in ways their parents would never have.
We can take a leaf from millennials' books because their sensible money decisions have been documented. They make smart money moves -
- They don't wait till they can put away a substantial amount - they save every penny they have
- Millennials do budget - they save for a goal and not just for retirement. They keep track of their financial goals on their computers and smart phones
- Millennials may come across as frivolous but they've taught us that you can actually spend your money. They don't want to be like most baby-boomers whose main focus was always on home ownership. They've discovered that putting money into physical things doesn’t alway pay off. The global recession changed millennials attitude to money and to life, and they reject materialism in favour of experiences which they say are far more enriching.
- They play the stock market because they see it is brimming with various investment options. In every sector, millennials are driving change and they love taking advantage of the high-tech tools that allow them to plough some of their earnings into investment opportunities. They use their mobile apps to do everything from choosing online stock brokers to following stock-picking tips. Millennials don't pick up the phone to buy shares, just a click, while they're on the golf course, is all a millennial requires to make an investment.
*Photo is from ITU Pictures at Flickr Creative Commons.