It looks like all those lectures, classes, and punishments are paying off. Millennials are said to be doing well when it comes to financial matters. Doing well does not mean they are soaking in money. It means they are on the right track.
They are saving much more than their parents and grandparents did at this age. It might come off as a surprise to the older generation that the youngsters are actually being conscious on how they earn money, how they spend their money, and how they manage their money.
Among the reasons that lead to this amazing mindset might have been the mere fact that they were in debt as soon as they graduated. The fact that most of them had to start paying off their education loan had prompted them to start saving money. Another reason might have been the economy recession. This crisis had set them on the path to save money, prepare for emergencies, take care of themselves, and to never take it for granted.
How Do Millennials Save Money?
1. Embrace Technology
Millennials are great at using the technology to their own benefit. We’re not talking about Snapchat, Facebook and Whatsapp. While these apps can generate income in the long run, they are also other numerous apps that millennials use to keep track of their financial matters. Apps like Mint and Digit are great to keep track of spending habits and investments. There are also apps like Acorns which help to invest money into diverse portfolios. So, it is obvious that being tech-savvy has some merit.
2. Room With a Buddy or Move Back in with Parents
These options are not glamorous but are definitely helping the youngsters to save money. The picture that has been painted for a long time is that one has to move to a big city, get a job, and live in a chic apartment. This doesn’t work. So, youngsters are now living with roommates where they are splitting the rent and utility bills. Another smart move is that they are moving back in with their parents whereby they need to only pay for utilities and small amount of rent (if any). These two options can help one cut down on living expenses greatly, especially since the living costs in big cities had multiplied tremendously.
3. Delay Traditional Milestones
Another picture that had been painted is that one has to get a job, buy a car, buy a house and get married. All of these require major financial commitments and will leave bank balance to a bare minimum. Youngsters are sacrificing the comfort of having their own transportation and are getting friendly with public transportation, UBER, and other ride-sharing services. It is also notable that youngsters want to be financially stable before they get married and start a family.
It is time to learn from fellow millennials the tricks to save money, especially now that the cost of living has gone up. Saving has become a necessity and smart actions are required to be financially stable.