Lifestyle / Boomers Vs Millennials: How They Handle Money Differently

Boomers Vs Millennials: How They Handle Money Differently

Lifestyle Dec 09, 2014

by Anokhi Admin

How Baby Boomers And Millennials Handle Finances Differently

Each generation views money management and understands wealth differently. Baby Boomers and Millennials are both large generations. There are 79 million Boomers and 82 million Millennials in United States. Millennials are people born between 1980 and 2000, while Baby Boomers are the generation born between 1946 and 1964.

Power of spending

According to Cara Newman, editor of Young Money, Millennials have a lot of spending power. She cites a “Generational Media Study” showing that there are 82 million Millennials compared to only 48 million Gen Xers. She suggests that this is the “largest generation of young people since the baby boomers.”

Newman explains, “They already spend $170 billion a year, of their own and their parents’ money. Whether you are interested in marketing to them, managing them or simply getting along with them, it is important to understand a few basic beliefs of the Next Generation.”

The Great Recession

Neale Godfry of Forbes agrees. She observes that the Millennial generation may have more in common with their Great Depression grandparents than meets the eye.

According to a Wells Fargo survey, the effects of the Great Recession of 2008 have affected the generation to a huge extent. Of Millennials, 80 percent say the recession has taught them that they have to save their money “now” in order to “survive” economic problems in the future. While 45 percent aren’t saving for retirement, slightly more than 50 percent are saving.

The difference varies by gender, as 61 per cent of men and 50 per cent of women reported that they were saving. The findings were a part of the “2014 Wells Fargo Millennial Study” conducted online by Harris Poll for Wells Fargo. The survey encompassed over 1,600 U.S. adults aged 22–33 (Millennials) and over 1,500 U.S. adults aged between 49 and 59 (Baby Boomers).

The social media generation

With their smartphones and tablets, Millennials are the first social media generation. They crave genuine networks and interactions with people. Aware of the problems of the Great Recession, Millennials work differently when it comes to their finances. They can build relationships via social media outlets like Facebook and Twitter to cultivate relationships and garner businesses and advice from financial experts.

Retirement

Millennials have already started planning for their retirement. According to Godfry, “If longevity studies prove accurate, [their retirement] will be a lot longer than ours. Here, teaching compound interest is a must. Just $200 US saved and invested per month at 6 percent interest, grows to half a million in 45 years.”

Diversifying your portfolio

Godfry also advises that Millennials learn to invest while they’re young. Learning how to invest also helps them invest with diligence and take calculated risks when it comes to their finances. Of India's 1.2 billion people, approximately half are under the age of 25; that is, over 250 million are categorized as Millennials. One key factor is that Indian Millennials appear to describe more feelings of positivity and neutrality when compared with the two prior generations.

_{Featured Image: saveup}

COMMENTS

Brands Creating Awareness For Breast Cancer Month

Ways to Get Out of Work Early

Bedroom Ideas For Kids & Tweens

Discovery Explores India's Living Traditions

Fall Time Cocktails

Benefits Of Music

Expensive Homes Around The World

The Singh Project Exhibition: Celebrating The Turban & The Beard

Prepping Plants For Winter

Career Vs Home: Tips To Achieve Balance

How To Drive Safely In The Snow

Improve Gratification In Your Life

Enjoy Winter Break Hotspots With Kempinski Hotels

Top Wine Accessories

Modern Mantels For The Holidays

Thanksgiving: The South Asian Way

Black Friday Survival Tips

Tarot Reading: December 2014

British Curry Awards Celebrates 10 Years

Meera Syal Hits The Theatre In 'Behind The Beautiful Forevers'

Smart Grocery Shopping Tips

Fitness Regimen For The Holidays

Is Your Biological Clock Ticking?

Why Do We Judge Others?

Holiday Decor Tips

Rowenta Vacuum: For Every Type Of Cleaner

4 Tourist Destinations In South Asia

Manage Holiday Stress

Author Spotlight: Frost Bites

How To Handle Awkward Questions At Holiday Dinners

3 Idiots Actor Launches A New Book, 'Warrior'

Tips For Staying Healthy During The Holidays

Thrifty Holiday Gifts

Food Addiction Is A Disease

Single-Parent Family Vacations

Hot Spot: Rick's Cafe, Jamaica

Hot Climate Getaway Care Tips

Have Your Kids Help Out This Year

Executive Chef Wins Entrepreneur Of The Year Award

5 Tips To Keep Your Body Hydrated

Pakistan Tragedy Aftermath

New York's Famous Free Hot Spots

Fun Stocking Stuffers

Holiday Drinks To Amp Up Your Entertaining

Holiday Hangover Cures

New Year Celebrations Around the World

An Interview With Anna Sui

Nickelodeon Experiences At Azul Hotels

Recipe: Bombay Turkey Wellingtons

Missing AirAsia Flight QZ8501

CBC To Release Documentary 'Muneeza In The Middle'

Staying Fit for the Rat Race

Bounce Into Health

Top 5 Inspiring Home Decor Instagram Accounts

Warm Up Your Living Space

Paris Attacked: 12 People Killed

Fight Chronic Pain With Superfoods

How To Treat Specialty Fabrics

Ice Skating - Have You Tried It?

Habits That Can Harm Your Teeth

The Practice Behind Spiritual Wellness

Pet Care During Winter

The Cruise Life

Hot Spot: San Francisco

Fantasy to Life: Escape Rooms

Herbs To Grow In Your Kitchen Year Round

Decorate Your Pillow With Text

DIY Valentine Gift Ideas

Siblings: Friends For Life

Recipe: Goan Shrimp Curry

Leave The Kids At Home - Guilt Free

Morocco: A Magical Mystery Tour