With their smartphones in hand and philanthropic mindset, Millennials have taken the world by storm over the last decade and are continuing to change the way our world looks at and deals with money.
These affluent do-it-yourselfers have changed the way money is invested and spent and are continuing to open a new world of opportunities and businesses and strive to create the lifestyle that many before them will only ever dream about.
INVESTING THE MILLENNIAL WAY
The 2017 Wealth and Worth survey showed us that only about 25% of Millennials compared to nearly 50% in the previous generations, invest in the stock market.
This may seem like a young and dumb strategy of typical kids wanting to spend money and not invest, but this doesn’t prove to be the case for this generation. While they may not be pumping their life’s earnings into stocks, they aren’t carelessly spending it either. They “hold a hefty cash position” and are using their money to start new businesses and for positive social impact.
Millennials are all about opportunity. They invest for future opportunities or in purchases that will, in return, help create opportunity.
While student loan debt and retirement are major concerns for the younger generations, Millennials also find it more difficult to focus on these things and also manage the lifestyle they wish to live. Their focus relies more on setting up a career they are passionate about and being able to generate social impact and growth with the money they earn.
Compared to only 14% of the older generation family members, 32% of millennials said they gave back by investing in companies that support a cause that is important to them.
WOMEN ON THE RISE
Wealthy Millennials pride themselves on fighting for social justice and equality and women in this generation are definitely benefiting.
The survey shows us that while men are still the dominant decision makers when it comes to money, women are now up 25%, compared to 15% in previous generations. What is even more interesting, women as the primary caregiver in the household now only amount to about 58% percent, whereas before it was a striking number of 89%.
To say change is on the horizon is an understatement. Millennial women are much more likely to pursue their careers before starting a family and less likely to give up their careers once the family comes into the picture. Women are becoming main earners, are pursuing their own businesses while men are much more likely to help out at home.
THE FUTURE OF MILLENNIAL SPENDING
U.S. Trust stated, “A generational shiſt is now more apparent than ever. Today, differing beliefs and behaviors between younger and older generations can cause conflict, but that disagreement can also provide opportunities for innovation and redefining impact.”
As affluent Millennials continue building their fortunes, they are also building much more. Whether they are investing in a home, a new business, or a social cause, they key to understanding Millennials and their spending is understanding their passions and their dreams and goals.
Millennials are the youngest generation with the highest amount of entrepreneurial drive and spirit. In this digital age, Millennials have access to any information or resources they need to become their own boss and many are braving that route. Even a large percentage of those in corporate jobs, have different plans and have big changes planned for their near future.
Because Millennials are so driven, persuading or encourage them to spend money is more difficult. They need to be highly motivated and assured that by investing or spending their money, they are closer to a better life for themselves, their family, and for others.
Kevin Thompson, chief marketing officer at Sotheby’s International Realty, looks to the Millennial future and what it means for luxury markets in the future, “Newly affluent millennials have a surprising degree of influence – You’re seeing the largest intergenerational transfer of wealth. These people are going to be in control of everything.”