Millennials, your approach to managing money is different from that of your parents or grandparents when they were your age. These differences, along with stereotypes about millennials, have given Generation Y an unfair reputation for poor financial habits.
At Rockland Trust, we serve customers from various generations, giving us insights into how financial behaviors differ by age. Here are some surprising truths about how millennials handle their money:
MYTH 1: Millennials aren’t buying homes and having babies
REALITY: Generations Y and beyond are living differently from older generations due to various factors. While you may be reaching traditional milestones later, you are still getting married, buying homes, and having children. For example, according to the New York Times, millennials bought more homes than any other age group between July 2016 and June 2017, accounting for 36% of all homes sold.
The timing of life events, like starting a family, significantly impacts finances. Marriage and homeownership can offer tax benefits, while having children introduces new financial considerations, such as saving for college.
MYTH 2: Millennials don’t know how to budget
REALITY: Despite growing up with significant student loan debt (averaging $37,000 per person), millennials are savvy budgeters. You have developed strong money management skills out of necessity. Beyond managing debt, you’re finding creative ways to make extra money, like starting side hustles to pay off debt faster and save for major life events.
MYTH 3: Millennials aren’t saving or investing enough money
REALITY: This myth isn’t unique to millennials; everyone could benefit from saving more. Many millennials are actively saving for retirement, often through employer-sponsored plans like 401(k)s. Other options, such as Roth IRAs, are also popular for retirement savings.
Investing can be challenging, especially with market uncertainties. However, working with knowledgeable financial partners can help you, regardless of your generation, make informed decisions to meet your financial goals.
