Millennials are also turning away from credit cards in favour of using Buy Now Pay Later apps
SYDNEY, Feb. 27, 2021 Millennials are a diverse group, the youngest of which is turning 25 this year, while the oldest is nearing 40.
In this stage of their lives, financial decisions are increasingly impacted by the fear they won’t be able to achieve material goals.
The worry is that they won’t be able to meet key financial goals, such as buying property, paying back student debt, or saving for retirement.
The differing money-related behaviours of millennials compared to their parents have resulted in their ability to save more. By putting their money into savings accounts, exploring investment plans, and choosing smart financial technology services, millennials are setting the foundation for a strong financial future.
Faced with the risk of being unable to land their dream job, buy a house, or retire until much later in life than their parents did, millennials are choosing to delay homeownership, cutting back on alcohol, spending more on public transport and choosing interest-free payment options wherever possible.
One of the reasons why millennials favour interest-free, online services such as Zip is for their ability to help with budgeting. The millennial crowd are known to manage their finances closely with the help of new technology. Almost 1 in 3 millennials use online tools to track their spending and 7% make use of budgeting apps.
Millennials are also turning away from credit cards in favour of using Buy Now Pay Later apps to manage their finances responsibly, and as a cheaper alternative to credit cards. They also try not to incur interest through unpaid balances unless absolutely necessary, making interest-free BNPL providers a popular choice for this demographic.
Millennials have come of age during a time of economic disruption, technological change and accelerated globalisation. This has given them a set of behaviours and experiences vastly different from their parents. Their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business now and into the future.