Millennials are breaking all the rules about money. They’re spending too much on leisure activities, they’re not saving enough, they don’t know how to invest, and they’re financially irresponsible. These are just some of the many opinions people have about millennials. Are they correct in these assumptions?
Millennials, also called Generation Y, are people who were born between 1981 and 1996. They’re also referred to as digital natives, having grown up during the rise of the internet and other technological developments. But instead of this being a good thing, it adds salt to injury—older generations think their world revolves around what selfie would make them look good on their social media apps.
It’s understandable why previous generations think that way about millennials. Baby boomers adhere to traditional processes and strict timelines (e.g., face-to-face meetings, staying in their company for years). Millennials, on the other hand, use modern technology to help them become more efficient. Baby boomers tend to call this “cutting corners,” but to millennials, it’s innovation. When it comes to financial mindset and behavior, the difference is just as apparent.
According to a recent report from Bank of America, 75% of millennials admit that they tend to overspend as compared to other generations, and 64% say their age group is terrible at managing money. It’s no surprise that older generations call Gen Y the “broke millennials.”
But what people don’t see beyond the image Gen Y exudes is that 63% of millennials are saving, and 59% feel financially secure. The number shows they’re just as good (or better) in handling their finances as the older generations, but they’re not getting enough credit for it.
infographic by: www.cashalo.com
