Surveys by Pew Research have concluded that millennials are liberal, expressive and confident, and nearly one in two have a tattoo. It’s a brand-new generation with new attitudes, something that businesses, especially those of a financial nature hoping to sell to them, are not confident about. If this is the nature of your interest in the millennial generation, here’s a quick insight into what goes on in their minds.
Millennials care about doing something, not getting somewhere
Studies show that millennials do not see themselves fighting to climb the corporate ladder. What they do care about is changing the world through entrepreneurship. Entrepreneurship is central to the millennial worldview. They simply distrust what large businesses do, seeing them as too corrupt, and too tied up with their own agendas to bother with. As far as millennials are concerned, life is about learning new things and evolving, and it is running their own business that helps them get there.
Millennials do not care about savings but do care about homeownership
According to the Everything Guide on Millennials60% of millennials see themselves as spenders. While they do save for a rainy day, saving isn’t the kind of behavior that they identify themselves with.
Homeownership is the one exception to the focus placed on spending and having a good time today. Eight out of ten millennials believe they will invest in homeownership one day. Since they are also confident about the value of having children and place family above career and financial success, these homes are likely to be large ones.
Millennials love credit
For a generation interested more in spending than in saving, it makes sense that credit cards should play an important role. Millennials love going online to look for financial information and finding the right credit card for the right job. The typical 25-year-old millennial owns three credit cards and uses them to buy cars and to make other large purchases. This generation also does not pay what is owed the same month, choosing instead, to roll their balances over. The typical millennial credit card balance is between $1,000 and $5,000.
Not surprisingly, then, they do sometimes trap themselves in debt. Many use Google to look for balance transfer cards, consolidation loans, and other such products (try here).
Millennials are looking for advice
Among millennials, nine out of ten do maintain a relationship with a traditional bank. Surveys reveal, however, that they aren’t happy with these relationships. Millennials expect to go to banks to have them completely take care of all their financial needs, including guidance and advice. They aren’t interested in banks simply as places to keep their money in and loan them money for a car or a house. For this reason, as long as millennials don’t plan on major purchases, they choose banks by the quality of their digital services alone.
Millennials have a practical, live-in-the-moment attitude to finance, and it’s likely to shake things up for the financial industry in the near future. The takeaway is that any business attempting to deal with millennials needs to step away from old ideas about savings and banks and draw up new plans.
Photo: Android Community
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