The advancement of technology has immensely affected the global investment market in the last forty years. While the progression of technology was slower in the early part, globalization soon followed and technological interventions in the investment market grew at a faster rate. Those born in the eighties and nineties are the ones strangely witnessed this strong change and gradually developed certain habits which combined both their inclinations towards the age-old financial practices and their new-age learning. With time this gave way to certain financial trends which are frightening yet is the realistic picture of how the current generation thinks and does to their money.
1. Lack of Investment in Retirement Schemes
More than 40 percent of the youth currently working in the mainstream financial sector are least inclined to investment in Retirement schemes. Experts are of the opinion that a youth looking towards a prospectus career usually becomes entangled in student loans at a young age. Hence the tendency to accumulate money for the future specially through a retirement plan is somewhere very bleak.
2. High Credit Card Loans
Compared to their previous generation, the tendency to live life in the now is more crucial. It is due to this reason that credit card loans are a constant high and there are more and more youths who have long outstanding bills. The banks have to put effort in procuring money from these customers who also have a tendency to miss payment dates. Late payments in this respect are a trend. The growing tendency to afford luxuries is the reason for the affinity of the millennial towards credit cards.
3. Bill Delinquencies
The millennial generation trend is that of missing out on bills. If you go around and do a survey almost every one would have at least one instance of missing out on paying a bill on time With advancement of technology where you have online paying options as well as reminders, etc, still bill payments are frequently missed out on, and that is frightening since an individual’s credit score goes down along with it
4. Orthodox Ways of Investment
The millennial grew up watching the ups and downs of the market specially the great inflation that took away jobs of many across the globe. Imbibing such experience, the investment methods of the current generation is way too orthodox. In this respect, experts are of the opinion that the knowledge about the current changing scenario of the stock market and about investment in general is comparatively lower than that of their earlier generation counterparts.
5. Delayed Financial Stability
A journey towards building a career starts with loans and the urge to grow faster in life and career leads the current youth from one debt to another. This affects them personally as well as the urgency to start a family also loops from behind. Many people who are into loans and debts are of the opinion that to start a family the prerequisite clause is to unburden the financial loans. But due to the mentioned reason, of rash spending and orthodox saving methods, such process takes longer. The growing tendency of the current youth to marry and have kids in the later part of their 30s is a direct effect of this frightening financial situation.
There are certain areas of investment, the nature of which have not changed over the years. This is investment in mutual funds or stocks and shares in general. The current generation needs to make a strong financial foundation in the growing years of their career. With a strong footing then they can spend willingly and even strategically diversify their financial portfolio- a method that will help them secure the future of their finances.
