FINANCIAL MENTALITY OF GENERATION Y
Aside from modernization, there are more remarkable changes that occurred over the past decades which gave rise to the world that our millennials have com to know today. Aside from modernization, a lot of factors have shaped the minds of young people nowadays, especially in terms of viewing their finances. Studies have shown that the clash between the youth’s financial outlook and the reality have resulted to a great uncertainty in terms of their economic future.
For starters, although millennials are usually viewed as headstrong and ambitious particularly in reaching for materialistic goals, it was found out that majority of them are not confident enough that they will reach their targets at an early age compared to their folks. Given the burden of student loans and unemployment, a relatively small but vital 15 percent of them have no jobs, which may further add to their financial load even at their middle age.
Young people nowadays are also equipped with a global mindset, meaning additional factors such as environment play quite a big role when it comes to their investing habits. Preference to follow their gut or go along with their peers’ way of investing has become popular, and despite being largely dependent on technology, most of them remain most comfortable with people close to them handling their funds, as they tend to be doubtful of experts’ motives.
On to the most popular factor: spending practices. As what many are saying, the evolution of social media is one of the biggest influences in the way the present generation handle their money. A recent survey unveiled that above three quarters of millennials are prone to envy over their friends’ material belongings, luring half of them to avail for credit cards in which they have trouble paying. Piled bills, overdue payments, and hiding from bill collectors have been incorporated in their habits plus, a lot of them equate financial stability with being able to pay bills on time.
Changes in spending have also become evident, with more millennials buying costly items in discount stores, and credit card debts reducing with lenders getting stricter in terms of payment extension.
Lastly, today’s youth considers a lot more than just a job that gives a nice paycheck every end of the month. Other determinants have become increasingly important such as fair treatment and the ability to grow. Unfortunately, their easy access to social media has caused them to mirror themselves using their peers’ own achievements as basis.
All in all, the future of Generation Y in terms of finance is quite blurry at present, and a lot of factors will determine their success including economic and political considerations and most importantly, whether or not they can surpass the sense of entitlement that the society has imposed upon them.
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