What Gen Z can learn from millennials
Just like Gen Z, millennials have a different approach to saving, spending and investing. Having faced unique challenges and learning some hard lessons about money and life, they’ve had to adapt but, in the process, reshaped innovation in personal finance and banking.
Millennials take a different approach to financial planning; here’s what you can learn from their money habits. They make value-driven investments Millennials have seen the impact of unsustainable and non-inclusive finance. When choosing companies and industries to invest in, they take social, environmental and governance factors into consideration. It’s not just about profit; it’s also about people and our planet. Technology has made investing more accessible to this generation. With so much access to information, research and a variety of investment vehicles, apps and platforms, it’s now easier to start investing early, respond to trends more quickly and create more time and opportunity for their money to grow.
They’re focused on their financial future
Being the largest segment of the workforce suffering job losses and salary cuts due to COVID-19, and having lived through the 2008 recession, they’ve experienced the effects of financial crises first-hand, making them keenly aware that a successful retirement is up to them. And it turns out that they take it seriously because they’re starting to save earlier, save more and more frequently than previous generations.
They’re conscious consumers who try to spend meaningfully, prizing experiences over products and accessibility over ownership. What’s more, millennials are increasingly adopting the Financial Independence, Retire Early (FIRE) movement, where they live frugally and save and invest vigorously to leave the workforce early and have the financial freedom to pursue whatever they want to.
They’ve seen money isn’t everything
Many millennials have come to realise that a 6-figure salary doesn’t equal success or happiness. Money is important, but so is being valued and your personal development. Millennials aren’t afraid to make the changes necessary for a better work-life fit and to find purpose in what they do. Even if it means downscaling, changing their lifestyle or moving to the country, they know they can always start over.