A financial survey was conducted by Bank Of America of the self-reported saving habits of more or less 300 Millennials, sorted by age brackets 23-27 and 28-37. The results show that 1 out of 6 individuals reported that their total savings, including money in savings and checking accounts, investments, and retirement accounts were around $100,000. It looks like today’s generation is quickly learning to be more financially responsible than some others.
Although some financial experts perceive the study of evaluating only a certain group as ineffective, some prefer to look at it on the brighter side, suggesting that other generations’ financial goals should look to the Millennials as an example.
Take a look and learn at how Generation Y takes care of their hard-earned money and how they let it go.
1 Borrowing Habits
Transunion conducted a study on the borrowing habits of Millennials, which showed that those ages 21-34 are opening more auto and personal loans than Generation X. The difference does not mainly lie in the desires of the two groups, but the availability or the acquisition process of products.
For example, with more and more competing auto dealers in the market, and the increasing demand in banks for a customer base, causes lenders to stretch out loan terms and procedures — mainly down payment schemes — making it easier for everyone to own a car in affordable installments.
2 Spending Choices
Millennials spend, and sometimes lavishly, on apparel both online and offline. Although the label is one of their concerns in their purchase decisions, discounts and freebies would weigh just as much against values like quality and authenticity, sourcing and great shopping experience.
This tech-savvy generation’s buying behaviour is highly influenced by digital media. The internet provides them knowledge on how to purchase with convenience, where to buy specific items which may not be available in brick-and-mortar stores, and which products are on sale or which ones come with free shipping or freebies.
3 Investment Preference
It’s surprising how brave today’s generation is in taking risks and bigger responsibilities. Most of them see benefits and put their money in investments like property, a car, and even retirement plans. In the past, like in the case of older generations, investing in retirement plans is not fully realized until mid-life or at the age of 40, but Millennials may have understood the future benefit of it at an earlier age.
With the knowledge they acquire from the information that is available to them online, platforms like a retirement planning tool aid them to understand better why investing in a retirement plan should be included in one’s list top priorities. This affects them positively by allowing them to be able to manage their finances wisely.
4 On the Bucket List
Travel is always on most Millennials’ bucket list. That’s because they love investing in experiences. They have this feeling of wanting to be ‘in’, being able to claim that they have been there and done that.
Travel and all other investments give them immense satisfaction, knowing that their hard-earned cash is not going to waste but adding knowledge and skills to their lives, and paving the way for a future for them.
