In the modern-day, everything from computers to cars are getting more expensive. As young people, this can be difficult since we don’t have much money and focus on saving. Because of the expensive necessities that surround us, some say millennials aren’t savers. However, even though they may perceive us in a certain way, we are savers and work towards saving more and more. Millennials are savers; let’s dive into what millennials do to save.
We over save and invest
One common trend among millennials is that we over save. We understand that there are big investments coming in the future, so we have to save now to get ready. We’ll develop habits and think things thoroughly to make sure that we’re saving every week, every month, and every year.
Let me give you an example. Millennials will work on a weekly basis and set a certain amount of money they want to save on a weekly basis. To make the math easy, let’s say the goal is to save $100 per week. If that’s the target, millennials will shoot to save $120 or $150 each week. We want to make sure that we hit the mark, and many times we want to go above and beyond. While this isn’t present in every single millennial, it’s very common among our generation.
Millennials are savers because we over save. This means we purchase the necessities and a bit of our wants, then put the rest in banks or investments. Nowadays, you’ll see more young people discussing the stock markets, annuity companies, 401ks, how to make money online or other investments. By over-saving, we give ourselves a financial cushion.
Once this cushion is developed enough, we are able to spend money to make money. Some take high risks while others play it safe, but we invest our extra thousand dollars to turn it into two or three thousand in a few years. We see these investments as investments in our future and investments in ourselves. Millennials are savers because we care about our future. We want to make sure that we can make the purchases we need and provide for parents and others if need be. It’s better to forgo the expensive wants today for a better life tomorrow.
We set financial goals
A key aspect of over saving and investing is setting financial goals. Sometimes this means obtaining a job that pays a certain amount, saving x amount of dollars per week, or putting y amount of dollars towards investments each month. Goal setting is common among our generation, and millennials are savers because we know how to set goals and make plans on how to get there.
We follow a basic process of creating a budget, developing an emergency fund, and paying off debt. While this isn’t an easy process, we discuss how to do it with those just a few years ahead of us. Millennials are savers because we learn from our own financial mistakes and also learn from the financial mistakes of others. Goal setting and learning from mentors helps us prepare for the future we want.
We know how to get deals
By growing up in the .com era and the explosion of the internet, millennials know how to get deals and save on common products. When shopping, many of us start off by looking at the clearance rack or tab on a website. When buying online, we do quick google searches to see if we can get discounts. This leads us to save 10 percent here or 25 percent there. This can really add up quickly, helping us save big cash. Even apps like honey take a few seconds to check and help us save.
We also look for holiday deals, or sign up for customer loyalty programs to get more discounts or free items. Some even will go to thrift shops or second-hand stores for clothing or other fun things. Regardless, millennials love to save, and millennials are savers because we know how to get deals on wants.
While getting deals on wants is great, let’s dive into saving on the necessities. We look online for coupons at grocery stores, or use student discounts wherever possible. Additionally, we buy in bulk at places like Costco to get more bang for our buck.
We make lists of everything we need to avoid impulse buying unnecessary wants. When it comes to rent and utilities, we look for small ways to save, like turning off the lights when we’re out or saving water. We take public transit or walk to save money on gas, and look for free parking.
These are small habits, yet they are still fast-acting and long-lasting. Millennials are savers because we know how to get deals and how to save along the way.
We understand why we spend
While saving has its benefits, understanding the why behind a purchase helps millennials be smarter about the purchase itself. We always ask, “is this really worth it for the price?”. In many cases, it is worth it or we don’t have many other options.
We spend money to cover our necessities, but also to fit in with our peers and avoid the fear of missing out. We’re social, but we understand the cost that comes with it. Let me give you an example. Among millennials, street shoes are becoming more and more popular.
Millennials are spending more on Air Jordans or high-quality Nike or Adidas shoes to fit in. Many ask themselves before purchasing, however, “Am I willing to pay over $100 just so people will like me more?”.
Sometimes it is worth the price, and many other times it isn’t. However, we apply this same mentality towards many of our other purchases. This can be “Am I willing to pay $20 for a large pizza?”, or “Am I willing to spend $60 on a tank of gas when I can walk?”
Understanding the why behind the purchases helps us understand the value of a dollar. Many times things just aren’t worth our money, so we don’t buy. Millennials are savers because they learn the value of a dollar and understand why we spend.