Millennials characteristics are things that fascinate everyone. But what makes them so different from other generations?
Those born between 1980 and 2000 – or millennials – are generally more tech-savvy and extremely self-confident. They are probably university-educated so they have a clear plan for career development. But, they are also seen to be “addicted” to the online world. A study showed that 65% of millennials state they and their routine would be more affected by losing their phone or computer than by losing their car.
Millennials characteristics also stretches to the usual money worries of those before, but with a difference. Millennials are the ones struggling to buy housing. Plus, they are the ones who found the job hunt a struggle after university thanks to the recession.
However, whether we like it or not, millennials are the future and currently account for the largest section of America’s workforce.
But, what is it that makes them so different? Here are 3 ways millennials characteristics differ from their predecessors:
1. Millennials characteristics start with different money goals
Of course, the best place to start with this kind of statement is Facebook. After all, a majority of its users fall into the millennial bracket! Plus, it seems fitting that earlier this year, Facebook published some research based on the conversations of US-based millennials.
Facebook’s findings revealed the following:
- About 50% of Millennials believe that being debt-free is the main aspect of successful financial management.
- Just 1 in 10 linked the possibility to retire to financial success.
- Millennials tend to set short-term goals when it comes to financial planning. They do save but do it for short-time goals like going on a vaction rather than buying a house.
- They are not familiar with investment – a quarter of Millennials reported they had no idea how to invest.
This attitude to money has meant most millennials plan to work for longer. However, they only plan to work for longer doing what they like and in an environment that suits them.
Given millennials are also more likely to live longer, it is hardly surprising they are looking for compromise somewhere along the line!
2. They have university fees and hefty rents
Linking to the above point about attitudes towards money, millennials have also been hit by sky-high rents and property prices. They have also doubled this up with hugely high university tuition fees.
In the UK, university tuition fees were brought in shortly before the millennium. Costing as much as £9,000 a year, and set to rise further for students in England, these fees are added to by expensive maintenance loans.
So much so, that the Institute for Fiscal Studies estimates that UK students will leave university with nearly £20,000 more debt following changes announced in 2012. When compared to previous generations who paid no university fees at all, the difference is noticeable.
And then there is renting. Many millennials, unable to gather together the deposit needed for a mortgage, are turning to rent. But it isn’t cheap. In London in particular, rents are notoriously extortionately high and wages are simply not keeping pace.
3. Their financial priorities are different
Despite these financial worries, one of the strongest of millennials characteristics is their attitudes towards financial priorities.
According to the same survey by Legg Mason, mentioned above, the rising popularity of smartphones among younger generations means ways of engaging with financial services are changing rapidly. A total of 46% of UK millennials are keen to use their smartphones to do all their financial planning – which is the highest in Europe, according to Legg Mason. By contrast, just 13% of baby boomers feel comfortable with such an approach.
No need to say that smartphones and computers have become an essential part of our daily lives. In September last year, a study by professional services firm Deloitte states that young UK adults are smartphone addicts. Around half of the 18-24-year-olds admit to checking their phones in the middle of the night.
Our reliance on gadgets also affects our financial priorities. These priorities tend to move from big things, like a car or a house, to smaller items, like phones and gadgets, which cost less but are becoming more and more important for our daily routine.
Plus, it would appear that millennials are moving away from traditional high street banks. According to the Millennial Disruption Index, 53% of millennials don’t believe their bank offers anything another bank offers. At the same time, millennials are more likely to switch banks in comparison with older generations.
This information demonstrates how important technology is for millennials. More than two-thirds of millennial respondents think that in 5 years the way we manage and use our money will change drastically.
In the end, it’s just a difference!
Millennials tend to take advantage of contemporary financial tools like e-banking, digital currencies and payment apps. All these tools and platforms are changing the way millennials manage their money and make payments. As a result, they are also given more freedom to decide what they want to do with their finances.
It’s perhaps easy to see how the world of the millennial differs from previous generations! The technological world they have been brought up in has allowed them to be more technologically savvy, which has seen a change in attitudes towards relationships and finances.
By Becky L.