This is How Millennials are Saving Money

Millennials Saving Plan

There are a lot of misconceptions about millennials. Some people have pushed the false belief that millennials are lazy and self-centered — and like it that way. And, judging by some experts sharing their two-cents about this subject, are terrible with saving their money. I’d love to see a study carried out about the motivations behind the individuals and industries that continue to spread these rumors.

In reality, millennials are hard-working. They’re not as selfish as you would believe. And, they’re careful with their spending. It’s the few that mess it up for the rest of us. If anything, they have challenges that previous generations haven’t had to face, such as making less money than previous generations.

Let us look at the ways they are saving BIG …

As reported at: Mashable

They get roommates

Changing your lifestyle is one of the best ways to save money. For millennials that means getting roommates to help cover the cost of rent and utilities. In fact, according to a study by SmartAsset, it was found that you could save at least $700 per month in high-rent cities like San Francisco, New York and Boston by having a roommate.

They’re careful with their spending

Even though millennials enjoy going out to eat, for example, they spend less than Gen Xers and Baby Boomers not only on eating out but on many other expenditures.

The reason? “It’s very likely out of necessity that millennials have a strict hold on their finances,” Pukas said. “A lack of capital has forced this group into a more frugal lifestyle compared to other generations.”

They’re putting off or avoiding, traditional milestones

Millennials as a whole are either putting off or avoiding traditional milestones like purchasing a home or vehicle. Unlike previous generations, these just aren’t necessary for millennials when they have options like Uber, renting a place with some roommates, or moving back home with their parents.

In other words, the sharing economy provides millennials with the services that they need without the financial burdens of ownership. They’re also putting off getting married and having children.

Instead of burying themselves in debt to achieve these milestones, millennials are either delaying them until later in life when they have enough money to purchase a home, car, or start a family, or they are just not worried about it.

They don’t use credit cards

While millennials are quick to embrace new payment methods like digital wallets, they still prefer cash. In fact, 58 percent of millennials have reported that they prefer to get paid in cash.

It’s a smart move because this prevents them from making unnecessary purchases and getting themselves into credit card debt.

Furthermore, a study by Bankrate found that 67 percent of millennials don’t have credit cards — which is the lowest amount of people without credit cards in any demographic, among adults.

They’re using technology to their advantage

Millennials excel at navigating technology. Which makes sense since they grew up in this hyper-connected world.With apps like Acorns and Digit, they’re able to automate their savings. For example, Acorns rounds up your purchases and places the extra change into a diversified portfolio.

Millennials are also using apps to earn cash back, rewards, and find the best deal online. Honey, for example, is a Chrome add-on that pops-up when you’re about to checkout and then automatically searches for any coupon codes.

They keep retirement in mind

There has been no shortage of articles proclaiming that millennials aren’t saving enough for retirement. However, survey after survey has shown that when searching for a job — retirement benefits is a deciding factor.

“Millennials understand the importance of retirement planning and getting an early start on building retirement security,” said Robert R. Johnson, president and CEO of the American College of Financial Services.

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from Investing Insight http://investinginsight.org/millennials-saving-money/