What People Under 30 Know About Money
People view money differently at each stage of their life. Learning how to manage it better sometimes comes with age. This is not always the case. There are also factors at play in how you were raised in figuring out money spending habits. When you come from parents who are spendthrifts, it might be a little hard to shake that impulse yourself. When you are managing Money under 30 you are still learning certain finance skills from your parents.
You just naturally inherit that tendency from them after years of watching them manage their finances, good or bad. Fiscal responsibility and financial planning, or the lack thereof is easy to pick up on. It can be a learned skill or one that needs significant work over your entire life. Learning basics like the result of compounding interest when you shop personal loans online or with a bank.
If you look at whole generations of how people may spend money, you might be surprised to find out that millennials, or “Gen Y”are actually a savvy bunch when it comes to how they spend their hard earned cash. If you think that this group knows very little about financial things, you would be wrong.
This category of people, who are mostly under 30 right now, have grown up in a technologically advanced age, where everything they need is right at the touch of a button literally. They are therefore more analytical in how they process everything, including their funds. Here are a few things that millennials know about money that might shock you.
They Value Experience Over Things: Money Under 30
In the age of social media, it’s a fact of life that people are posting their lives more than ever to Facebook, Instagram, and Twitter. Social media is more prominent in this younger generation than with all others. You can instantly see what all your friends and loved ones are up to in real time.
Millennials don’t like missing out on things, so they tend to value experiences they can document with their smartphones over buying random things. This is something admirable about their age group that will give them more fulfilling lives, than the whole old school thinking of buying items to “keep up with the Joneses.”
In General Millennials Have Less Money Than Previous Generations
With the rising cost of college nowadays, many millennials are leaving higher learning institutions with a significant amount of debt from student loans and credit cards. This can weigh heavily on them and certainly influences their spending habits.
Overall they are also making less money in the workforce out of college than previous generations, including the baby boomers and Gen X. This is partly being newbies in working, but salaries for them are generally starting lower than decades before. So they have to balance their income and expenses very carefully.
The so called “boomerang kids” are setting a trend to move back home after graduation. Those under 30 are now a lot more likely to live at home for extended periods of time versus their parents generation. According to a Trulia report, 15% of those between twenty five and thirty five were living at home in 2016 compared to their baby boomer parents at 7%. That’s double the amount of people living at home versus their parents generation.
People under 30 have Better Budgeting Skills Overall
Schools have been stepping up to teach kids real life skills, such as time management and budgeting in what used to be called “Home Economics.” Math courses during the middle school years are even teaching skills such as how taxes work, budgeting real world expenses, including food, clothing, and basic household necessities, and how that works with an income. It’s more logic based learning with real world applications that many generations before didn’t study at all.
Financial Apps that make Managing Money under 30 simple
If you are wondering about great technology to manage money under 30 or anytime age really, here are some great budgeting tools and overall ways to calculate your net worth using apps.
- Try Mint.com money management app. It automatically pulls your transactions into one place for your financial accounts.
- We also love EveryDollar.com to build automatic budgets that track your daily spending habits
- Good Credit habits to help you improve your Credit Score is a must!
We’ve also written an extensive review about the Top 10 Financial Apps fro those under 30. Tools millennials will naturally understand.
Saving For a Rainy Day Is Prominent
According to numerous studies including one by Fidelity, more than 80 percent of millennials have a “rainy day fund”, or emergency savings that will get them through a job loss, or other troubles. TIME Magazine reported that 70 percent of millennials start saving at the young age of 22-years-old. In comparison to the baby boomers who didn’t start saving on average until much later at 35-years-old, this is a clear difference that will serve the under 30’s well throughout life.
The Fiscal Times even goes a step further to say that millennials are “champs at saving money”, which is quite a compliment when you look at the facts that back it up.
Finding Alternate Ways To Make Money Comes Easily
In this gig economy with Uber and other odd jobs being a way of life in order to earn extra money, millennials aren’t afraid of supplementing their primary income with a little side work. Whatever brings extra money into their pockets, right?
This is smart thinking to know about money that when you have less demands on your time, you can earn more. Many millennials aren’t married and don’t have families yet to contend with, so it’s natural for them to want to work as much as possible.
The fact is that is millennials know quite a bit about money. They don’t fear it controlling their life or stressing about it unnecessarily. Millennials aren’t feeling as bogged down in general by financial stresses. When you analyze what people under 30 know about money, it truly boils down to a better understanding of the almighty dollar that will serve them well over their lifetime.