Good morning to you Millenial Reader I truly hope you’re keeping well. I know, sometimes times are tough. Scratch that, most times it seems like the light at the end of the tunnel fizzled out. You may be at rock bottom but I assure you it can’t get worse than that; it can only get better.
Money is a sore subject to many people and to others, a source of delight. Last week, we reviewed the relationship between millennials and gen zs with money. We also highlighted that it’s not all doom and gloom when it comes to the subject of money with these two generations. It is important to note the paradigm shift that has occurred in terms of the way millennials and gen zs view finances and money.
Today, I thought it wise to tackle how these generations are managing their money. Call it “financial management” if you may. Technology has made it easier for millennials to protect their money and earn more. Unfortunately, it has also added a layer of complication. There are tools like online trading platforms, money-saving apps, and technology-driven investments like cryptocurrency making it difficult to decide what is the right vehicle to use to protect or grow your money.
Although personal finance is a complicated subject, there are important things millennials and gen zs can focus on as they manage their money. These are insurance, savings, debt, and budgeting.
- Budgeting
Without budgeting, there can be no financial planning. If a person doesn’t have a budget, how do they know the amount of money they are making, saving, or spending? Budgeting is what tells you if you need to spend less or if you have money that you can set aside to invest using tools like online stock trading apps, which are increasingly popular amongst millennials and gen zs. Budgeting requires a person to take their income and then partition it into funds that will be spent on different expenses. When that is complete, determine how much should be left over for savings.
- Social media
Technology influences the way millennials and gen zs invest, whether they are making personal decisions or getting wealth planning help from an advisor. There’s a place for financial advisors because of the importance of building trust and human relationships. We rely on friends and connections through social media to make decisions now, but in the future, we may want assistance with wealth planning from someone who can distil data and personalize it to our needs.
- Digital currencies
Millennials and gen zs are even more comfortable with the idea of alternative financial systems, and this has opened the door to a variety of innovations, from alternative investment vehicles like cryptocurrency to point-of-sale lending alternatives.
- From big banks to challenger banks
One-fourth of millennials now have their primary checking accounts in digital-only banks, according to a 2021 study by Cornerstone Advisors. In addition, 77% say they are likely to move their bank account to a digital-only bank, according to Galileo Financial Technologies. This openness to banking alternatives presents opportunities for fintech startups looking to innovate in financial services from the outside.
The shift in money management from generation to generation is evident. It is important for millennials and gen zs to invest in money management be it by enrolling in a short course or contacting a financial advisor/coach.
Are there more ways in which millennials are managing their money? Please feel free to comment below.
Till the next read, bye and happy reading!
Ruthie Kimani ❤❤❤
The Millenial News 