What financial tendencies of the young people?

Not always, the younger generation keeps pace with the time and sometimes makes mistakes that may backfire.

Millennials is a generation of young people born between 1980 and 1999. They transform the economic, social and political life of society.

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Members of this generation tend to be more optimistic, sociable and diverse than the population of the older age group. However, they are not always correct and logical behavior in financial matters and aspects of the budget allocation. So what are the mistakes most often allow the younger generation, but that does right?

Strengths

Value of education

Many representatives of youth today receive higher education, because it opens up additional possibilities of building a successful career. In other words, they are actively investing in knowledge and are willing to spend on it too much.

They do not buy cars

According to statistics, Generation is 29% less likely to buy cars than Generation X. Moreover, as of 2015 the number of car owners among the age group 22-35 years was 25% lower than in the same age range.

A similar trend can be explained quite simply. Firstly, they do not want to take credit for the car, and secondly, they can easily take advantage of innovative transport services such as Uber, Okessays.com or BlaBlaCar, and without no problem to get from point A to point B.

Millennials live with parents

For the first time since 1880, young people aged 18 to 34 years old often live with their parents. At the same time, this trend is not due to a lack of material resources, or low wages. Rather, the reason lies in the cost of rent and late marriages.

Weak sides

They have no savings

23% of Gen Y do not have a savings account. It is not good in terms of the economy and retirement benefits, since the earlier a person starts to postpone retirement, the more impressive is his bag.

They practically save money today, preferring to postpone the matter and think about it later. To cope with this problem, experts recommend young people to use special applications and services of banks, helping to make automatic payments into a savings account.

There is one old rule – you should not give more than 30% for housing from the income, but they do not adhere to this recommendation, and sometimes completely ignore it. In some large US cities, young people are willing to pay for housing up to 79% of their monthly income. It becomes clear why Generation Y does not have savings.

About the Author: Mike Ross is a layer. He is from Chicago.