Millennials are the generation born between the early 1980s and the late 1990s. They make up most of the population globally, which could mean that most marketing and spending trends were based on this demographic. Though there are several aspects of life where millennials had it easier, they still continue to struggle with one thing—money.
Most millennials started to work after the Great Recession, a period where the global economy took a plunge. But even though the world has recovered from that slump, the said generation is still struggling, and here are some of their challenges.
According to a 2017 CNBC article, the costs of in-state and out-of-state education is around $20,000 to $34,000, while private colleges’ costs are doubled. The steep prices made most students consider getting student loan debts, which will eventually haunt them as they start working. And paying these debts is one of the many reasons why millennials just can’t save up.
Expensive real estate
Most millennials also struggle with the inflation in the housing market, leading to most of them preferring to rent for a much longer period before actually buying a house. And aside from expensive houses, renting does not help either. According to USA Today, compared to older generations, millennials are spending a larger portion of their income on rent as its costs also increased.
The average annual health care cost per person in the U.S. two years ago has reached $10,345, per a separate CNBC article in 2017. The only benefit of millennials is the lower premiums for their age category. It is also cheaper to treat people aging below 45.
But the millennials are not entirely blameless for their struggle with money. They are also known to spend most of their money on apparel and electronics. It is not actually a bad thing, but the constant updates on trends and technologies make them want to keep up, thus buying more than what they needed.
Money saving tips from a millennial
A millennial that goes by the name of Sean has recently made news because he managed to save a little more than $250,000 at only age 28. to save a little more than $250,000 at only age 28. Here are some takeaways from his interview with CNBC:
1. Track your spending
Tracking your expenses could really help you control how you spend because as you record everything, you can identify the unnecessary ones. By that, you could develop better spending habits and become a more conscious and efficient spender.
2. Try to distance yourself from social media
Sean said that you should not buy into the idea that you should do what everyone does—or own what everybody owns. Social media triggers this kind of behavior when it comes to spending as most millennials compare their lifestyles with their peers or even with people they are following.
3. You can still splurge
Saving up does not mean you should not splurge. Buying something for yourself is like investing in yourself—to make you feel better and more confident. But you must ensure that what you are buying would truly make you happy. Though not necessary, splurging on something useful (that you also really want) would be a more practical option.
4. Live simple
And lastly, Sean encourages more people to be content and live simple. As long as you have everything you need, you do not have to spend more. Just remember to live within your means.
With the current economic climate, it is still possible for millennials to save up as long as they put their minds to it.
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