Although they have frequently been labeled as materialistic, spoiled, and saddled with a sense of entitlement, the truth is many millennials feel they will not be able to achieve material goals like finding their dream job, buying a house, or retiring until much later in their lives than their parents did. Paying off student loan debt has become increasingly difficult for many who are struggling with unemployment and low-paying jobs.
The Great Recession left more than 15% of millennials in their early 20s out of work, many of whom are still struggling to get their feet on the ground. This will hurt them long after they do get work. Economic studies of those who were unemployed during the recession in the early 1980s revealed that they were still behind schedule financially 20 years later.
Millennials are turning away from credit cards. Just 41% of millennials own a credit card, versus two-thirds of older generations. Millennials that do own a credit card have about half the debt of older generations. 69% of millennials are using their credit card less as a result of using Afterpay.
Millennials are saving more money than their parents. Millennials are 30% more likely to save regularly than their parents. More than 80% of millennials budget, compared to two-thirds of older generations.
Millennials are using Buy Now, Pay Later (BNPL) products to manage their finances responsibly. 57% of millennials like Afterpay because it helps them manage their finances.
Millennials are savvy spenders. Millennials are delaying home ownership, cutting back on alcohol and tobacco and spending more on public transport and private health insurance.
Millennials are harnessing new technology to manage their finances closely. Almost 1 in 3 millennials use online tools to track their spending and 7% use budgeting apps. 72% of millennials research on the go before they spend, compared to 28% of older.
