Let’s start by defining who the millennials are and why they are called like this: This group corresponds to all the people who were born beginning the 80s, they are more related to digital issues, a public that resists working in companies, they are content creators, persuasive, and they are lovers of challenging banks to conquer them, most of them prefer to use online banking, use services through banking apps and stay long in social networks. This is the main reason why banks have been forced to rule on networks and thus reach this generation directly and faster.
What are the economic challenges facing millennials?
- Maintaining a stable income of money: Belonging to a generation that seeks to “Satisfy the here and now” makes it difficult to join a company and receive a formal payment for the services provided. This generation has a lifestyle based on the phrase “You Only Live Once”, saving for the future to ensure financial stability in senior years of life is not part of their plans.
- Advancement of technology: Although technology is considered an advantage for millennials, we must also analyze the negative side that indicates that these technological advances have in many cases replaced human jobs, this decreases the chances of hiring people.
- Labor preferences: Millennials prefer jobs that give them the opportunity to do their jobs from the comfort of their home, that allow them to have flexible hours or offer them benefits such as working from home at least twice a week . However, not all companies have these benefits, so they prefer to hire staff to ensure their stay in the company for longer.
- Competitive labor market: This group faces a competitive market, in which the other generations are willing to assume greater responsibilities, adjust to fixed schedules and for less money.
- Lack of Financial Education: 2019 has become one of the years in which more information on financial education has been delivered in the United States. Millennials can easily search in the web and find countless topics related to their country’s finances; however, this generation must be promoted and motivated to be interested in researching and analyzing the benefits of living a healthy financial life.
- One of the most interesting content is this podcast in which Ana María Lusardi, President of the Denit Trust Academic Program of Economics and Accounting at the George Washington University School of Business, talks about how to improve different aspects of financial education with habits as common as saving or practices such as credit.
In this way, millennials have access to valuable information that can make a difference in their financial lives.
How the Millennials can improve their future?
• Savings: Although the survey of 1,003 US Americans, conducted by Princeton Survey Research Associates International, showed savings habits among millennials, financial education should be expanded to raise awareness of the entire generation and increase this habit thinking about the future since most of those who are saving are not thinking about their retirement.
The World Economic Forum predicted that by 2050, when millennials from the eight major pension markets begin to withdraw, the retirement savings gap will be US $ 427 billion. ” (According to BBC WORLD)
• Investments: More than half of US millennials show being proactive regarding investments and demonstrate interest in forming their own businesses and being independent. An excellent initiative that motivates them to take risks is the search for financial stability.
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It is a generation with innovative ideas, attractive lifestyles and with particular interests, among them “traveling and knowing the world with little money”, unlike previous generations, their trips are not based on being comfortable but enjoying the “now”.
