The best millennial finance stories of the past fortnight. Find out why millennials aren’t so different from their parents and why the new millennial themed monopoly game isn’t going down well.
This article challenges notions about millennials being responsible for the demise of everything from bar soap to casual dining. Drawing on research from the Federal Reserve, it suggests that the reason millennials are adopting different consumer habits to previous generations is because they simply don’t have very much money. The report cites rising healthcare costs, increasing borrowing for university and a limited amount of parental help as rising for millennials change in spending habits.
A new version of the classic Monopoly designed for the millennial generation hasn’t gone too well among this age group. The board game, which encourages players to collect experiences rather than property – including going to a vegan bistro and going on a meditation retreat – has provoked a backlash amid claims it is patronising and irritating. That said, it has amused older generations, with many taking to social media to share their amusement.
Millennials are spending a large proportion of their post tax earnings on unplanned purchases, according to data from American Express. According the figures, US millennials spent an average of $411 per month on spur of the moment buys, such as concert tickets and eating out with friends. The article also offers some helpful hints and tips on how to cut last minute spending.
The report by the Federal Reserve also suggests that millennials might not be so different to their parents after all. According to the study, their parents’ generation, the baby boomers, were in turn criticised for their loose spending by their elders. It indicates that some money strategies that worked for the boomers could work for millennials as well.
New research from VantageScore found that millennials’ aversion to risk could be lowering their chances of getting low cost loans and credit cards. According to the research, millennials are less likely to take in more debt as their financial stocks rose, unlike other generations. There are suggestions the credit system could be overhauled to ensure this age group doesn’t get penalised for being overly prudent.
Think you’ve got millennials figured out? A recent report by the CFA called Uncertain futures: 7 myths about millennials challenges pre-conceived assumptions about how they manage their finances. As an example, while millennials are often seen as being overconfident about their finances, the report explained that many millennials don’t expect to ever be in a position to retire.