What are the Millennials financial challenges?

financial challenges

This generation, which is becoming the largest economic force, directly faces the challenges of the new millennium economy. How are millennials being prepared? Millennials or Generation Y, as they are also known, is those who became adults or are young adults at the beginning of the new millennium. They have experienced the effects of economic crises such as 2008 or the fall in oil prices have different consumption habits and financial education.

financial challenges

Unlike Generation X, those born after 1965 and until the mid-1980s, and baby boomers, born between 1946 and 1965, millennials are digital natives. For them the management of technology is a natural behavior in their lives, they spend more time on the internet than watching television.

They are also multitasking, daily have many tabs open in the Internet browser and handle several devices at the same time. On the other hand, they tend to be more demanding with their consumption according to a survey of Forbes magazine 86% of them said that would not buy again from a company if they have a bad experience as customers

Financial Features

Millennials save more than the other generations: a Bankrate survey says that 66% of millennials describe themselves as savers, as the money they keep is more than that of previous generations this despite the tough challenges facing. In the survey millennials say they are saving over 10% of their income. In another study, done by the Economic Innovation Group, half of millennials surveyed say they save for their retirement.

They are more careful with the use of credit cards: many people of this generation regret having borrowed money to pay for college which is why they think twice about borrowing money. According to New York Times data records the percentage of people under the age of 35 with credit cards has reached its lowest level since 1989. In addition to continuing to pay for their studies having seen relatives in debt in lean times has influenced Their decisions.

They are not interested in traditional status symbols: a millennial does not dream of having a luxury car or a large house, in fact they   are 29% less likely to buy a car than Generation X, nor are they interested in expensive brands. They often look for cheap forms of entertainment like staying at home preparing food and watching Netflix, prefer to invest in a trip rather than going to a restaurant or an expensive party.

The generation does not demonstrate little financial knowledge about investment, credit life or pensions, nor do they understand very well how taxes or stock exchanges work. This can affect your long-term projects and your entrepreneurial dreams.

They are financially fragile

Although they are savers, millennials are not prepared for unforeseen expenses such as fines of more than one minimum wage. They do not worry about getting credit life so they do not usually have a card that pulls them out of trouble, or a way to ask for a loan.

Economic facilities are declining according to researchers at Stanford University, people in 1950 were 79 percent more likely to make more money than their parents, in 1980 the percentage was 50 percent. It is estimated that the fall is due to the devaluation of university degrees since becoming professional has fewer advantages, even when the cost of education is increasing

Due to the high costs of education millennials begin their adult life full of debt. The problem with these debts is not having stability, which has made them postpone goals such as getting married having children or buying a home. It is advisable to pay debts to become a priority, not to be tied up and to continue. Many make the mistake of choosing a credit plan with a low payment rate per month, in the end they end up paying a lot of interest.

It is believed that millennials are gaining 20% ​​less than what the baby boomers gained at the same age. This is because it is different to get a job after a time of recession than in a time of fat cows. After a crisis, people who are unemployed often despair of getting a job by doing so they try to stay as long as they get one because they are afraid of being unemployed again. This prevents them from thinking about other better-paid opportunities or asking for a raise. It is advisable to bet on winning rather than betting not to lose so once the situation is recovering, it is ideal to look for opportunities or even think about negotiating their salary.

The adjustment of wages in relation to inflation has fallen from before the recession of 2008. It is estimated that since the 1970s the deterioration in well-paid jobs has led to less participation of men in the labor force since in 1960 80 % of men between the ages of 18 and 34 had jobs today it is only 71%.