Millennials, or those born between 1981 to 1996 who are currently in their early twenties to mid-thirties, have somehow earned the reputation for being an “entitled generation.”
However, many of this generation have grown up to become professionals with permanent employment or freelancers in the gig economy, a term this generation refers to for short-term independent contracts.
“Millennials are very consumption-driven. They typically allocate a significant portion of their money for experiences such as travel, food, and education. They save and invest to be able to finance their short-term goals,” said Sheila Tan, president and chief executive officer of BPI Asset Management and Trust Corporation.
Making the most of the internet
When it comes to getting information about savings and investments, millennials generally tap the internet.
“They are a generation of digital natives, hence they prefer transacting online through smartphones and laptops. It is equally important that they can view the status of their investments online anytime,” Tan said.
According to the latest customer data from BPI, the average age of millennials who start to save and invest is 24 years old.
“Since information is accessible at their fingertips, they make use of technology to research by watching videos, reading blogs and reviews, comparing financial product providers before choosing an investment product that is suitable to their needs,” she said.
Millennials believe that they have the power to plan their finances early because when it comes to investing, time is one’s greatest ally. The longer you are invested, the better you can mitigate risks.
Save and invest, even if irregularly
A BPI study also shows that the number of millennials with investments is increasing at a faster pace compared to older generations.
According to Tan, a prevalent behavior of millennials is irregular investing wherein they only set aside money when they feel like it or when they feel the time is right to invest.
Millennials gravitate towards more flexible investment products such as Unit Investment Trust Funds and Mutual Funds. While the investment habits of millennials seem erratic, they still strive to invest to be able to afford their lifestyle.
Given their tech savvy, youth, and eagerness to learn about saving and investing, the future remains bright for millennials. Non-millennials can certainly take a cue from them – make use of the internet to learn about saving and investing, save and invest whenever you can, and do so while aiming for the lifestyle you want.
