Arguably, millennials are considered to be more intelligent and disciplined in terms of finance as compared to their previous generations. Even they are considered to be exercising better financial habits than the baby boomers. Are millennials disciplined in their finance? The answer to this frequently asked question has been given by a recent survey by Schwab Retirement Plan Services, Inc. As per their survey, despite the financial challenges that millennials face, they are taking mature decisions when it comes to saving and investing.
Before we jump into why and how millennials are better disciplined in their finance than other generations, let’s have a quick sneak peek into who these millennials are. The millennials actually fall into the generation born between 1982 and 2002. This generation will be soon replacing the baby boomers’ generation.
Most of the working millennials are these days focused on their financial plan. Besides, they are also open to seeking professional help in managing their money in the present.
The survey also showed that around 75% of millennials track their expenses carefully and around 67% are more disciplined in planning a budget. A 2017 survey showed that they had increased their savings as compared to the baby boomers. what’s more startling is that more and more number of millennial workers, especially the youngest generation, are saving for their retirement. This indicates they are well aware how important it is to keep their financial planning on the top of everything else.
Here are the possible 5 reasons why millennials are smarter than other generations when it comes to finance management.
- Millennials are more knowledgeable
Blame it on the Internet! Today’s generation is more literate because of the overflowing of the information across the web and infinite access to academic books and intelligent sagas like Harry Potter and Hunger Games. The millennials are avid readers and are curious to gain knowledge about everything right from politics and software to finance and marketing gimmicks.
- Millennials are expressive and open
With social media being an integral part of our lives and everything going digital, today’s generation haschosen the social media channels like Twitters to raise their voice and encourage brevity of expression on the whole. Having grown up in the 21st century, they have become more informative and better expressive as compared to the older generations.
- They are less materialistic
As compared to the baby boomers or previous generations, millennials do not seem to crave for material possessions and are rather more interested in investing their money smartly with an eye for tomorrow. Apart from fulfilling their basic requisites such as home, car and a comfortable lifestyle, they are willing to invest and save their hard earned money for a secured future.
- They are broadminded and less racist
Gone are the days, when people used to discriminate in terms of race, religion, and creed. Today’s generation welcomes people from all walks of life. They believe in working with everyone in harmony irrespective of their color and racial status. Increase in inter-racial marriages is an ideal example of their nature.
- They give emphasis to education
These days, obtaining a Master’s degree is considered the basic parameter to become educated. Thanks to the abundant facilities offered by the Government and numerous educational institutions across major cities, the literacy rate has tremendously increased. Better education imparts better decision-making abilities and hence, they are able to do money management at ease. The millennials, by far, are the best-educated generation of all time.
Despite the challenges, millennials always manage to stay on the track
A recent survey reveals that Millennials are affected by money-related stress. Specifically, financial stress has disproportionately affected the job performance of around 35% of the millennials as compared to 11% baby boomers and 18% Gen Xers. Mostly, those millennials, who had availed student loans, are seen citing this as a reason of financial stress.
However, even during the time of stress, millennials are reported to be on top of their personal finances. Their long-term savings plan and other investments have helped them considerably manage their money even during the time of crisis.