The ups and downs of millennials and finance
Photo by Buro Millennial
Millennials and finance have a tumultuous relationship at best. Born between 1981 and 1996, Millennials have never had it easy through the last part of the 20th and the start of the 21st centuries. When it comes to finance and related aspects, there have been ups and downs.
Estate and cash inheritance
There is a common rhetoric today that Gen-Z is among the laziest we have seen. There are some relatable stories concerning the young adults of today. But of course, most are ordinary people getting on with life. Millennials seem to work harder in comparison, yet don’t have much to show for it. Today, many are relying on windfall properties and inheritance from their Baby Boomer parents, who reserved services such as will estate lawyer early in their working life.
Driving the crypto markets
If there is one thing Millennials have taken to where money is concerned, it is technology. Specifically, cryptocurrency and the Blockchain. Like Millennial life, crypto is no stranger to fluctuating drama. After the near-death of Botcoin a couple of years ago, Millennials are believed to be aiding with the recovery of crypto as they once again embrace the digital demon of decentralised currency. Only time will tell if there will be any more long-term problems.
Millennials and finance investment
Investment has never been more convenient or easier. But let’s be frank, it is essentially gambling. A concept that most people fail to see. However, growing up in a technological age aided by crypto and digital transactions, the style of investment Millennials use is different. Instead of traditional investment, Millennials use a more technological approach. A survey by Accenture found that 67% of Millennials consider tech a core part of investment and use computer-generated AI investment, with only 20% stating they would use only an advisor.
The bank of the parents
Most of us have had to borrow money from our parents at some point. Yet it is much higher for Gen-Z and Millennials alike. Services such as car insurance, rent and housing, and even entertainment streaming are paid for by the parents of Millennials. In fact, 1 in 3 UK millennials and Gen-Z admit to this. There are reasons for this, however. The cost of living crisis, rising housing and rent costs, and energy are all cited as major contributors to struggling Millennials.
The struggles of housing
Let’s be honest, it has never been easy to buy a home, despite what Gen-Z thinks. No matter your age, there are hoops to jump through, savings targets and a myriad of unseen costs. Then there’s the whole getting to grips with mortgages to contend with. Millennials have had an unforeseen effect on the housing market. Due to economic crises such as the crash of 2008, Millennials have caused the average first time homeowner age up to 36 as of 2022.
Summary
Inheritance of homes and cash are at the forefront of Millennials and finances today, as they await mortgage-free housing and money from Baby Boomer parents. However, tech-savvy Millennials use AI for investments, yet the average first time buyer age for homes has risen.