When it comes to finances, millennials have a different way of doing things compared to other generations. They want to do more than work all day. They want the freedom to travel, explore and experience the best of life.
The millennial generation is marked by drive and passion as well as a well-rounded focus that involves more than making money. Yet, they’re not financially illiterate, nor are they excessively impulsive.
In the United States, one-in-five millennials lack even rudimentary skills regarding finance, and often even with education, it can be challenging to manage money well. However, this is not because they are not interested in money. 37-percent of millennials who participated in a recent Facebook survey state that they make financial plans and 86-percent revealed that they save money every month. In an economy where a great deal of the millennial population is unemployed, this is a remarkable revelation.
According to Facebook, an analysis of 6.5 million posts reveals that millennial women drive 40-percent of all financial conversations on the social media platform, leading 60-percent of discussions about peer-to-peer payments, banking, credit cards, investments as well as loans and mortgages. This generation is deeply concerned about credit scores, debt and financial advice. The Facebook study further revealed that 53-percent of millennials report not having a trusted source for financial guidance and that only 8-percent of them trust institutions for financial information.
Furthermore, some millennials completely avoid credit cards, with 25-percent stating that they believe credit cards will damage their financial standing. Although, 40 percent report that they use a credit card to build their financial status, and 36-percent believe that credit cards enhance their financial flexibility.
Debt and Diminished Savings Consume Millennials
A recent survey conducted by the online banking enterprise Chime reported that in today’s economic environment interest rates are so low that the incentives do not motivate many millennials to save money. Furthermore, many millennials have failed the find tools or practices that help them save money regularly. Those who did report maintaining a budget revealed that they use simple budgeting tools such as basic spreadsheets, or even manually written notes. However, 65-percent would like ways to automatically set aside regular savings.
Financial planning, budgeting and saving is an undesirable task for most of the population. Still, this is especially important for millennials, of whom 40-percent report that they have student loans that they’ll be unable to pay off for at least a decade and 25-percent revealed that it will take them 15 years or more to pay off their student debt.
Do Millennials Care About Culture, Life and Status?
What motivates millennials and other younger generations? They’re driven by contacts, connections and influencers. Businesses, for example, commonly employ positive, influential role models to attract and capture the attention of potential millennial buyers. With more than a dozen corporate sponsors, for instance, Serena Williams is a powerful marketing influencer. She is able to attract the attention of millennials and persuade them to spend money on products.
The millennial generation has done remarkably well in many areas of life, such as fashion, travel relationships and other important aspects of living. Yet, the American Psychological Association (APA) reports that the millennial generation is swept up in society’s relentless pursuit of perfectionism. While this might sound like a positive characteristic, those who succumb to this ideology may not fare so well mentally or prove to be productive in the workplace or life in general, and avoiding this circumstance is difficult, as it’s impossible to avoid the judgment of others. Furthermore, the APA study revealed that millennials face a plethora of high-pressure influences, such as the desire to live up to social media expectations, a harsh economic environment and workplace conditions where individuals are rewarded based solely on their achievements, with those who do not excel typically cast into the realms of mediocrity.
Is the Millennial Mindset Wrong?
Sometimes known as “Generation Me,” studies show that most millennials are methodical and averse to risk. Still, they think big when it comes to career aspirations and societal impact. Some researchers speculate that this is because, most likely, employers relied heavily on these workers early in their careers and consistently rewarded them for exceptional work efforts. Millennials value action over words as well as practicality, while a very small segment of this generation are risk-takers. It appears that this generation is more driven by their desire to produce results.
According to a study led by Deloitte, millennials experience the most stress, followed by Generation X and Baby Boomers, making a strong case that there are legitimate reasons why millennials think the way that they do. They live in a world full of global conflict, economic turmoil and terrorism and are influenced by a whirlwind of circumstances, culture and emerging developments. Ultimately, the question to ask may not be what is wrong with the millennial mindset, but rather what people can do collectively to make life less stressful, and more meaningful.