In this article we will explain the habits most used by the millennial generation for success in life. Its financial education rules differ greatly from the behaviors and styles applied by generations that preceded it.
First, who ranks in this generation, and how their financial planning habits already impact how they acquire income, including alternative sources of income, planning for retirement and much more.
Ways of financial planning!
Millennials are known as the generation burdened by student debt mainly acquired in countries like the United States, so almost by and large millennials are generally better educated than their previous generations.
Millennials have a reputation for needlessly spending and spending on entertainment compared to older generations, but these money habits may be more indicative of the times we’re living in.
Millennials spend more on convenience, online shopping, eating out, experiences and travel, streaming services, debt and social impact by donating and buying from socially responsible brands.
On the other hand, according to the survey carried out by the sports betting site BetBrain PromotionsMillennials spend less on online gambling than, for example, previous generations who seek information about cars, clothing, housing and retirement, and online entertainment in other ways.
However, this is a generation that makes applications differently from their parents who preferred to save money every month, with the inclusion of digital banks and easier access to financial literacy, due to the rich amount of information that is in their hands with smartphones.
Investments in Cryptocurrencies, actions of some sustainable brands are part of their focus of investments and parallel activities, in order to plan for their retirement or even financial freedom.
Consumption habits
Another striking feature is consumption habits, while previous generations preferred to buy generic brand items to avoid high expenses, the millennial generation prefers to be fashionable, even if the brands are sustainable and relatively more expensive.
Where we can include from electric cars to sustainable houses with much higher costs. Representing today a 100% higher growth compared to the previous generation in luxury items.
Balance between personal and professional life
Millennials are always motivated, because of the values ββand experiences they were guided towards at the beginning of their careers, unlike other generations who did not have access to the amount of information and connections available on the networks.
The counterpart does not stick to one company for a long time, only valuing companies that help them create this balance. Always looking for a financial improvement, different from his parents who were proud to say they had been in a certain company for 10, 15 years.
average expenses
It was proven during a study that even people aged between 18 and 34 years old spend about 20% less than people in the 80s, much of this movement was due to the great recession and increases in vacancies for freelancers, being able to offer less working hours, better contracts and salary.
In addition, a good portion of the nearly 38 percent of the 25-37 generation have at least a bachelor’s degree, compared with 25 percent of Boomers or 30 percent of Generation Xers at the same age.
investment philosophy
Another study revealed by Investopedia confirmed that almost 2 thirds of the generation of people with stable financial life said they trust financial advisors. If you consider yourself an investment connoisseur, you are more than twice as likely to have a financial advisor.
The study collected information from more than 1400 people with incomes above 132 thousand dollars a year, with the growth of the financial sector focused on remuneration based on the performance of their investments.
Some millennials are more interested in having a personal connection with those who manage their money than ever before, despite their comfort with using mobile and online technology to perform many investment functions.
Financial Management
The millennial generation can and prefers to use digital banking and e-commerce systems to invest, whether they are robot investments or even micro investments. In fact, one in four millennials keep their money in digital-only checking accounts.
As a group, they tend to be socially aware and can invest in eco-friendly businesses. Millennials are comfortable with cryptocurrencies and point-of-sale lending alternatives.
According to the US Bureau of Labor Statistics, in 2020, the median income of millennial families, aged 35 to 44, was $85,694. Representing about 21.67% of the population over 72.24 thousand.
In Europe, the highest concentration of generation is in Spain and Greece and the highest growth of people aged 25-29 in Cyprus. In Brazil, they are already part of 34% of the entire population, already 50% of the active workforce.
our conclusions
Millennials face a range of challenges, including mounting debt, that only hindsight can truly understand. The future of this generation may even be more uncertain in some ways than any previous generation.
Your likelihood of financial success will depend on many factors, including economic and political conditions. On the bright side, more and more millennials are getting into real estate, looking for career opportunities outside the office, and putting more money into retirement.
