Millennials are a diverse group, with the youngest turning 25 this year and the oldest nearing 40. In this stage of their lives, financial decisions are increasingly impacted by the fear that they won’t be able to achieve material goals like buying property, paying back student debt, or saving for retirement.
The differing money-related behaviors of millennials compared to their parents have resulted in their ability to save more. By putting their money into savings accounts, exploring investment plans, and choosing smart financial technology services, millennials are setting the foundation for a strong financial future.
Faced with the risk of being unable to land their dream job, buy a house, or retire until much later in life than their parents did, millennials are choosing to delay homeownership, cutting back on alcohol, spending more on public transport, and choosing interest-free payment options wherever possible.
One of the reasons why millennials favor interest-free, online services is their ability to help with budgeting. The millennial crowd are known to manage their finances closely with the help of new technology. Almost 1 in 3 millennials use online tools to track their spending and 7% make use of budgeting apps.
Millennials are also turning away from credit cards and are using Buy Now Pay Later apps to manage their finances responsibly. They also try not to incur interest through unpaid balances unless absolutely necessary, making interest-free BNPL providers a popular choice for this demographic.
Millennials have come of age during a time of economic disruption, technological change, and accelerated globalization. This has given them a set of behaviors and experiences vastly different from their parents. Their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business now and into the future.
Edited by Maryssa Gordon, Senior Editor, Price of Business Digital Network