Smart Money Habits of Millennials
It may come as a surprise to some, but Millennials have a unique grasp on the management of money. But some studies suggest that even with greater financial burdens from economic uncertainty and student loans, they’re still lagging behind in basic financial education.
And while there are examples of some schools and universities now folding financial literacy into their curriculum, it clearly isn’t enough. A recent survey found that 87% of all Americans believe that financial literacy should be taught in school. And that sentiment is echoed in the feelings of Millennials themselves. The same survey showed that 60% of young people feel that a financial literacy test should be a requirement for high school graduation.
The problem may be this. In the minds of the students, there is no clear and applicable use for an education in fiduciary skills. Why should they learn about balancing a check book when they don’t even have a checking account yet? It’s the equivalent of those who have no interest in becoming a quantity surveyor; why would they have any need for learning about advanced calculus and parabolas?
But that’s on the lower end of the age range. It would seem that the older of the 19-34-year-olds are quite savvy with their money. Having grown up in a time when the Great Recession hit all of us pretty hard, they’ve learned how to be money-smart Millennials. And some of those ways of managing and saving their money are quite unique, even quirky.
They’re using abundant coupons, sharing the cost of living with friends or even moving in with family. They use apps to manage their money and ride-share services for transport. They’ve developed smart savings habits and even retirement moves. In a recent survey, 63% of Millennials said they started saving for retirement before age 35, despite low return percentages and tight budgets.
There are many ways that Millennials have found to keep their financial health in check, and the rest of us might learn a thing or two from their inventive and adaptive ways.
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