If your date of birth falls somewhere in between the 1977 and 2000, chances are you are one of the Millennials and a  part of what has recently been termed as “the millennial generation”.

SOCIAL MONEY

What is a Millennial

Also known as the Generation Y, Millennials are the offspring of Boomers and the largest peer group since their parents. They tend to differ significantly from their previous generations, primarily defined as a digitally native and tech savvy group. Millennials have been reported to be the first ones to try out and further use new technologies on a regular basis if they serve a particular purpose or enhance their lives on the long-term. Their upbringings enclosed a vast array of digital devices that embody communication with their friends, shopping, entertainment, mapping and education, all in one.

Millennials Social Media

Millennials find great comfort in using online and mobile technologies to oversimplify their daily activities. This could help us utilize a more accurate idiom to incorporate their behavioral pattern best: millennials. We’ve all grown accustomed to shaping up our daily basis activities according to the ever-changing and hyper-connected world. As we’re starting to spend more and more time online, every habit we form is getting influenced by our needs to align ourselves with technology. It’s becoming clear that our overall habits are evolving according to new developments.

Spending Power of millennials

Financial habits face great changes. More often than now, millennials are seen as materialistic, spoiled, superficial, and quite impulsive buyers. Bank of America cooperated with USA Today to find out some of their money and financial habits.

According to statistics, 84{8b3f73219b5080a422b1f04099b73d538078b62721cecdfd0086dbdff3438969} of millennials trust their abilities to manage their finances, while 41{8b3f73219b5080a422b1f04099b73d538078b62721cecdfd0086dbdff3438969} are chronically stressed about money. They stress over savings, spending more than they should and facing adulthood and responsibilities. Their not-so-healthy financial habits cause late payments of their liabilities, bill collectors, while they still benefit from financial aid from their parents.

On the other hand, millennials tend to adopt a few money habits that every generation should learn a bit from.

money transferMillennials pay for experiences rather than material goods

Millennials crave joy and adventure and aim to turn every day into an epic experience. Most of them are severe adrenaline junkies that are more than willing to embrace activities that result in a tremendous sense of personal accomplishment or provide immediate gratification. Millennials see mundane activities as opportunities that come their way and may bring extraordinary experiences. Wanderlust and stimulating escapades are high up on their bucket lists and, consequently, pay real money for these kinds of moments. They don’t see transactions as small transactions, but as financial investments that bring up exotic and precious memories.

Millennials talk openly about their financial status and decisions

Millennials are used to building long-lasting relationships with their peers. They are not ashamed to freely and transparently discuss their financial position or issues since they make use of external advice when managing their money. Millennials are usually community-oriented individuals and often, make economic or purchasing decisions based on input from their peers. Remember that last time you tried a piece of clothing on and sent a picture to your friends to ask for an opinion? How many times did wait for an answer to help you decide? Almost always. Millennials formed a habit of cooperation and collaboration with others. They relate to co-decision making in most areas of their lives.

Millennials are careful savers for emergencies and plans

Millennials have witnessed the market crash in 2008 and the financial downfall that followed the 9/11 attacks. These unfortunate events encouraged them to form a saving habit for emergencies. A recent bankrate.com study states that millennials are putting more money aside for emergencies and retirement than any other previous generation.

The financial crisis prompted finding alternative ways to ensure financial security. The Same study shows that lower earners put away more money. For example, 27{8b3f73219b5080a422b1f04099b73d538078b62721cecdfd0086dbdff3438969} of Americans with income that ranges between $30,000 and $50,000 tend to save up more than 10{8b3f73219b5080a422b1f04099b73d538078b62721cecdfd0086dbdff3438969} of their earnings.

Millennials pay extra for good Causes

Millennials are a high-values driven generation, especially when it comes to civic currency and good citizenship. They grow up learning that their voice matters, that gender equality, and human rights are something worth fighting for. Their gentle and caressing upbringing urges them to make an effort and align their beliefs with their financial decisions and purchases. Millennials used to befriend and foster brands that incorporate similar traits and purposes. They value authenticity, humanity, and clear statements, aligning their habits to the causes they care about.

Millennials use financial apps to manage their money

A smartphone is a millennial’s best friend. They invariably gravitate around gadgets, devices, and technologies that help them manage their daily activities. Mobile apps have practically always been part of their lives. Therefore it’s only natural to have their money habits consistently influenced by new technologies.

Consequently, personal finances management is no longer impacted on by financial advisors, since their effectiveness is decreasing when faced with same-industry apps that are user-friendly, easy to use and available 24/7. As they are digitally native, millennials have different expectations. They’re used to constant access to their personal data and prefer solving situations with a click or finger tap instead of in-person meetings.

This is a generation that tends to do everything on a smartphone. Millennials are virtual financial activities vary from investments, online banking, social transferring, and different types of transactions or payments. They are looking for apps that offer various money services in one since they’re all after fast solutions that quickly solve their needs.

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