The rise of the financially savvy generation

It’s one thing to be able to afford rent, groceries, a Spotify subscription, but being able to live comfortably each month can sometimes be a whole other story. Millennials get a bad reputation for some lifestyle stereotypes, i.e. smashed avo on toast consumption, love for brunching, travel adventures, even their passion for the Macca’s Monopoly game. But just because they enjoy the finer things in life (scoring a free small fries) why do some believe millennials aren’t thinking about their financial future?

According to a recent UBank study, millennials are more coin conscious and financially savvy than many other generations have ever been. Perhaps, it’s the hindsight from previous generations or even the impact of the COVID-19 pandemic that has made millennials think about managing their money more.

In this blog, we’ll define the term “millennial” and five ways millennials are the future of financial freedom.

Who is a “millennial”?

You’ve probably seen a millennial before (or maybe you are a millennial?!), they range anywhere from a mid 20-year-old to a mid 40-year-old. Millennials are also referred to as Gen Y and are the generational group that follow Gen X.

Millennials might process information faster than previous generations because of the constant updates that happen in the world we live in today and so if you ask a millennial “what is more important, access to the internet or water?” The answer might surprisingly be the internet. It’s really no surprise that millennials are savvy, because their generation has grown up with the expansion of the internet and endured the leaps that have been made within the digital revolution.

Millennials' are also more likely to discuss their financial situation with others, allowing them to make financial plans and goals for their future.

5 Ways millennials are financially savvy 

1. They budget and track their spending

There is always room for improvement, but millennials are focused on their finances. Building budget plans and tracking their spending (yes that includes the monthly UberEats orders) is a way of life and the first step towards financial freedom. (Hot tip: if you’re not currently budgeting? Don’t worry, download the Beforepay app to access budgeting and spending tools.)

2. They understand what their superannuation means

Superan-what did you say? According to ANZ Bank, millennials are the first-gen to receive the full benefits of the super guarantee, so of course, they are going to be interested in learning more about superannuation and how it affects their financial journey. It’s important to shop around and look at which super best suits you. (Sounds super important to us, pun intended!)

3. They compare and understand their insurance plans (i.e. health, pet, car)

It seems like there is an insurance plan for everything these days and there’s a good reason for it!! Life happens and millennials understand that more than any other generation has before. They know it’s best to be prepared and plan ahead, so it makes sense that they are comparing what’s on the market. Whether it’s their private health insurance or car insurance, Gen Y is finding ways to save money. (Now that’s savvy!)

4. They evaluate their current job

You might have heard people say that millennials are lazy workers or they don’t stay in the same job for more than a day. But really, millennials are only being financially savvy by evaluating their current jobs and asking themselves “do I deserve a pay rise?”, “how am I being valued in the workplace?” and “will this job help me reach my financial goals?” These are all great questions to keep in mind when thinking about your financial journey.

5. They live in a Fin-Tech world

It is now more than ever that Fin-Tech has really impacted our everyday lives, especially when it comes to managing our finances. Millennials use online banking religiously (mobile apps/the website of their financial institution are pinned on their laptops or phones). It’s not only for accessing money either, millennials opt into managing their money using budgeting and spending apps (Hot tip: Beforepay has a budgeting and spending tool.) Millennials are quickly becoming the most financial savvy gen out there due to financial technology advances.

Being financially savvy means that you are calculating your every financial move and that you're on your way to financial freedom! Millennials are doing just this and more. They might be the smashed avo generation, but they are also saving for their first home or planning a holiday away. If you are struggling to save or need help budgeting, the Beforepay App has a budgeting and spending tool, as well as our Pay On Demand™ service to keep your finances on track. Still hungry for more budgeting tips? Check out our 10 Easy Ways to Save Money Everyday blog.


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