The Millennials are also referred as the always-connected generation because most of their lives are spent online. They are the 81 million children born between 1982 and 2002, and they have diverse characteristics compared to generations before them. This is why the rest of the world has to try and catch up with their distinct methods. But, how are they catching up to their own financial responsibilities?
The Current Financial Standing
According to TrepScore, Millennials paid an insane amount for their college tuitions to receive exceptionally low job opportunities after graduation. Since the Great Depression, they are known as the most economically conservative generation, which was probably caused by the 2008 financial crisis. Around 67 percent admit that their experience with finances have been rough, which is why 66 percent of them want to commit to a budget.
As much as possible, this generation would rather do everything online. This includes the 94 percent who prefer online banking and the 74 percent who use mobile banking. Meanwhile, 22 percent of them seek for financial advice in social media and 66 percent follow brands online. They usually check their mobile for an average of 43 times a day and 30 percent even use four or more tech devices.
Their Distrust towards the System
In the United States, they spend around USD 17 billion on promoting financial products, while they devote only USD 670 million to encourage financial literacy. This means that for every dollar they allocate to financial education, they spend USD 25 dollars on marketing credit cards and loans.
The Economist reveals that less than a third of Millennials don’t believe that their banks are transparent and fair. This is why 71 percent of North Americans see their relationship with their bank solely as transactional. Their lack of the faith in the system is the reason why 33 percent of them admitted that they won’t ever need a bank and 71 percent explained that they’d rather see their dentist than listen to their banks.
Unlike previous generations, Millennials grew up in a technology-filled environment. Their attraction to unique environments and their lack of trust with the system is the reason for their current financial condition.