5 ways Millennials are better with money than Baby Boomers and Gen Xers
Millennials tend to get a lot of flack from other generations, but as it turns out, they’re actually a lot better in areas like finance than most people would think.
If you’re a baby boomer or from Generation X, you might be surprised to learn that millennials can actually teach you a thing or two about finances. If you’re a millennial, you’ll get some much-needed bragging rights!
They Exercise Restraint With Their Spending
Millenials sometimes get a bad rep for spending without control, but the facts actually show the opposite. On average, millennials spend roughly $26,000 per year which is 23% less than baby boomers and 27% less than Gen X according to TD Bank’s research.
This statistic might be somewhat deceiving as the lower spending might be partially due to lower incomes, restricted funds due to debt payments, etc.
Research Is King
Purchases are not taken lightly when it comes to millennials, and even more so when it comes to financial products.
Most millennials will do extensive research before committing their funds to a product and tend to look for the lowest fees when it comes to investment management. Older generations are often unaware of what their fees even are!
More Cash, Less Credit
Perhaps millennials have learned from the mistakes of their parents and grandparents when it comes to debt, but millennials tend to use cash, debit cards, and cheques much more frequently than Gen X and baby boomers.
TD’s surveys showed that millennials use their credit card 22% less than most consumers.
Happier With Less
Despite having some of the highest levels of unemployment, poverty, and student loan debt along with lower incomes than previous generations, 80% of millennials reported that they were content with the amount of money they had.
The reason for this might be a change of philosophy from past generations when it comes to what really is “enough”.
Better With Technology
Kids have been growing up comfortably using iPads and smartphones. So, it’s no wonder that the millennial generation is more advanced when it comes to technology use.
The perk of this fact is that millennials make use of the latest technology to track their investments, make budgets, and utilize their finances better.