It is known that millennials are stereotyped and frequently mocked generation. The older generation would even tag them as a generation of over-spenders, which is not applicable to every millennials out there—including the writer of this article. Some people might even add that they are broke and lazy but in contrary, not all Millennials are broke and terrible with their money.
Here are some of the reasons why millennials or 20-somethings are thriftier than older generations actually think.
They’re good at creating budget
Millennials are confident when it comes to handling their money. In a 2015 fall millennial report, 84 percent of millennials are confident in their ability to manage their finances. They know how to spend their money and where to spend it. With the presence of online websites that talks about money saving and the number of engagements that millennials have in the internet world, most of them would stumble upon this type of blogs and would basically learn from it.
Technology is of great help, really. There are a lot of applications that could help the millennials in creating their budget effectively. They just have to choose from the budgeting applications that are now out in the market. Just like Mint Budgeting App, PocketGuard Budget App, You Need a Budget, GoodBudget, and other applications that they’re comfortable in using.
They could easily adapt to change
Most of the millennials have gone through the stage wherein they shifted from the laid back era to the world of technology. These are the millennials who are born between latter parts of 1980’s and 1990’s—which are the often called as the 20-somethings. They experienced the simplicity of life before they were bombarded with the daily updates related to the advancements of technology.
Based on the survey made by Bankrate, adults between the ages of 18 and 29 are saving more than any other age group. Bankrate Chief Financial Analyst Greg McBride even added that millennials have a greater inclination toward saving, for both emergencies and retirement, than we’ve seen from previous generations.
They compare before purchase
The study shows that 71 percent of millennials will go online to compare prices before making a purchase and over half have compared prices while in the store. This is not anymore a surprise given that a lot of millennials are familiar with technology and how to use it. It’s much easier for them to compare the prices of the goods that they will be purchasing with just a click of the hand.
Millennials are also much more likely to have purchase quality-wise goods because of this. How is this possible? Aside from checking the prices of the goods that they’ll be buying, they could also check the reviews of each product. If they will do this, there will be a bigger chance for them to purchase products that last. Making sure of the things that they’re purchasing what makes them save more money than buying cheap goods that is most likely not of good quality.
They know their priorities
They will soon move out from their parents’ house. Maybe not now, but eventually they will. They will soon prepare their moving out checklist. They will soon get a stable job and start saving after paying their student loans. In fact, in a TD Ameritrade Millennials and Money Survey, two-thirds or roughly 66 percent of millennials are saving for a down payment on a home. Millennials also consider 29 as the good age to become homeowners.
It’s not true that they are not saving money for their future. It’s just they believe in the concept of today than of what the older generation believes. Scary student loans and uncertain employment prospects have made millennials postpone lots of life’s biggest steps, from marriage to kids to that first home purchase. They have their own techniques of saving and this is a bit different from the other generation that’s why they are sometimes being scrutinized for that.
They saw their parents’ struggles
Millennials who have seen the struggles their parents had under the depression era make them conscious about how would they spend their money. By having that kind of mindset, it makes them financially scarred that lead them to be frugal and wiser when it comes to spending their money.
It’s much easier for them to manage their money very well because they have experienced the hardships of not getting enough money to buy their needs. They have the depression-era mindset that’s why they know the importance of saving part of their salary. They will never take anything for granted and they will understand the value of hard-earned money, which leads them to make the most of what they have, living between their means.
The research suggests millennials aren’t living up to the stereotypes of being entitled, narcissistic and digitally obsessed. In contrast to what other people think of them, millennials are much inclined in saving their money since they’ve come to an age during a major financial crisis. They might not be the kind of person who saves more than have of their allowance but they’re the kind of spenders that knows what to buy and when to buy it.
Millennials are careful when it comes to managing their finances. They are becoming a generation of savers, having been frightened watching what has happened to their parents during the Great Recession. Even though they were dubbed as overspenders, other people even call them as the “wise generation”.
About Donna
Donna Estrada is an editor for Scoopfed and a graduate of Bachelor of Arts in Journalism. She’s a millennial who lives in a frugal lifestyle ever since she was in college.