The characteristics, challenges and saving habits of Millennials
“Millennials, and the generations that follow, are shaping technology. This generation has grown up with computing in the palm of their hands. They are more socially and globally connected through mobile Internet devices than any prior generation. And they don't question; they just learn”- Brad D. Smith.
Millennials face many obstacles that prior generations have faced, such as difficulty finding jobs and being unable to afford to buy their own house or rent their own flat, though this challenge has become more prominent over time compared to previous generations because of rising prices. Another difficulty faced by millennials and adults, in general, is not able to afford to pay all their living costs. 23.7 million adults (45%), according to a 2020 FCA.org survey is, borrowing or unable to pay their household costs for three months or more. However, according to ONS, those aged 25-64 who can afford to live alone spend a vast amount of their earnings on rent, mortgages, and other housing costs, such as electricity, water, and Council Tax. Millennials, like different generations, usually have a few jobs before having a job that fits their aspirations. According to Indeed , millennials or Generation Y are born between the early 1980s and 1990s. IN 2022 these individuals are between the early 40s and early to mid-20s. There are around four generations in the workplace: baby boomers, Generation X, millennials, and Generation Z.
Furthermore, Millennials are from an era of technological advancements such as mobile phones, computers, the internet, and social media, making them more technology efficient when compared to other generations such as baby boomers. They usually have access to mobiles and computers from a young age for reasons such as studying IT or Media studies at high school or college and safety reasons such as parents wanting to know where they are or simply wanting to treat their kids with a phone, which can make them more equipped with some of the skills required by specific jobs such as technical skills needed for the use of different programs and software.
Millennials are also considered brilliant problem savers and tend to apply creativity to find solutions to challenges that occur in the workplace; this is most likely influenced by the exposure they had to technology growing up.
Millennials and Generation Z, according to the Express, are saving money by having nights in instead of going out, using saving apps and purchasing second-hand items. Generation Z is the biggest over spenders by buying without looking around. However, younger people are still more tech-savvy when saving money; for instance, 28% per cent frequently use discount or rewards apps, more than those aged 55 or over.
In contrast, those aged between 35-44 were more likely to pay money on things they considered necessary. Although, it was found that if under 24-year-olds were given a salary increase, they would be more likely to splash the cash on excursions with friends and family and buy clothes.
On the other hand, Express found that over-65s spent most of their money on gig tickets, roughly £293.28 a year on tickets compared to younger generations. The main incentive for every adult to save money was to “save for a rainy day” (41 per cent). 39% believe that adding to their emergency fund is crucial, whereas 36% set extra money aside for a holiday.
Surprisingly, the youngest adults are more likely to define themselves as tight-fisted and reluctant to part with their money. And are the least likely to spend money on eating out, spending £27.55 each month.
IntelliSaving is a smart account application that easily tracks multiple savings and interest accounts on one platform. This money-saving app also has a personalised portfolio that breaks down your finances by displaying returns, balances, and withdrawals. In addition, the platform shows the best saving rates for each saving account, such as cash ISA interest rates. There is also a watchlist to refer to accounts that have piqued your curiosity while comparing the highest saving rates for different saving products offered by the banks/ and financial institutes.
IntelliSaving also has a range of articles with information on other finance-related topics and money-saving tips.
Millennials have a good chance of being successful in saving because of their ability to adapt and find resolutions to issues using creativity, meaning that if they face a financial challenge, their creative nature may help them find a solution that will help see them through. Another advantage that millennials have that previous generations did not have is that with the technological advancements, they can use technology to their benefit using saving apps such as IntelliSaving, which help them keep track of saving and interest-bearing accounts, which helps facilitate the manageability of finances. Millennials can sometimes be underestimated for their talents and what they achieve, but many work hard to get into careers they find rewarding and enjoyable, and some understand the importance of saving, as studies have shown. No matter what saving account a person chooses or challenges a person's faces, one must never forget that every move they make today could affect their future and never underestimate their own ability to overcome their challenges and achieve their potential. As Brain Chesky says, “Never assume you can’t do something. Push yourself to redefine boundaries.”