Millennials are often criticized for being reckless and financially irresponsible. But this is not necessarily true. Millennials have also achieved various financial goals for which they ought to be proud of. Here are a few of them.

leading a debt free life

1. Millennials get a pay hike when they ask for it
Millennials are more courageous than baby boomers and Gen Xers. This is what Bank of America’s report says.

Bank of America’s report reveals that 46% of millennials have asked for a pay hike or a promotion in the last few years. They have gathered enough courage to request a raise and 80% of them have received it. As per the report, Gen Xers and baby boomers lack the courage to ask for a pay hike or a raise at work.

2. Most millennial borrowers have stellar credit

It’s wrong to underestimate the capability of millennials financially. At least, the mortgage industry feels so. According to Sallie Mae, most home loans are given to millennials with a good credit score, usually in the 700 plus range.

According to CNBC, the average credit score of millennials was 703 in 2019, which is technically a good credit score. And, as per the 2019 Experian Consumer Credit Review, the average credit score of millennials has gone up by 25 points since 2012.

Probable reasons behind the increase in the FICO score are given below:

1. Lucrative career growth
2. Getting jobs
3. Achieving financial milestones

It seems that millennials have finally understood the importance of a good credit score. A stellar credit is necessary for various reasons like:

(i) Qualifying for the best rewards credit cards
(ii) Qualifying for balance transfer credit cards

3. Millennials manage money smartly using technology

Millennials know how to use technology very well. They use it to create a budget, make credit card payments, automate savings, and so on. And, they do it within a few seconds.

If someone wants to follow a budget, he simply download a budgeting app on his smartphone. Budgeting apps like Mint help millennials to track and monitor savings 24*7. If someone wants to automate savings, then he can do it through a mobile app easily. This is a major difference between millennials and Gen Xers. Gone are those days when people were dependent on checkbooks or bank officials for any banking related issue. Most things are done online nowadays.

4. 35 Percent of millennials are homeowners

According to reports, 35% of millennials are proud homeowners. This figure is indeed less than the national average. However, it’s equally true that a boost in millennial homeownership has helped the real estate industry indirectly. It has led to the overall growth of homeownership for the first time in the country after the Great Recession.

Millennials deserve special applause since buying a home is not a piece of cake in this current economic situation. Student loan debt and lack of steady wage growth are already taking a toll on the millennials financially. The fact that millennials are still buying a home in spite of so many hurdles is really commendable.

5. Millennials are saving money every year

Without savings, you can’t think of leading a debt free life in this country. According to a survey conducted, two-thirds of millennials have saving goals. And, the most interesting point is that they can save dollars every month. Around 16% of millennials have already saved $100,000 in their checking accounts, which is not a small figure. As per the results of the survey, 59% of these people feel financially protected owing to the money they have saved. This proves that millennials know how to earn and save dollars. It’s wrong to assume that they can’t keep money in their hands.

Conclusion

Last but not least, millennials deserve appreciation for yet another reason. Millennials are smart investors. In fact, millennials are better investors than Gen Xers.

Earlier, millennials were completely dependent on stockbrokers for trading stocks. The stockbrokers used to charge high brokerage fees for buying and selling shares. In fact, thousands of stockbroking firms mushroomed in the last decade just to milk money out of innocent investors. Stockbrokers have only one simple job to do. They have to buy and sell stocks of the investors and earn a commission for each trade. This means stock brokers reap profits from all aspects - both from buying and selling shares.

Many stockbrokers even buy and sell stocks of investors without even consulting them just to earn a commission. Thousands of investors lose lots of money due to fraudulent transactions every year, and they have to suffer financially.

Millennial investors are tech-savvy people. They do stock trading online within a few clicks. They are not dependent on stockbrokers anymore. They do stock trading through smartphone apps and avoid getting scammed by money-mongering stockbroking firms.

32 Comments

  1. I think what you're saying about millennials is true. I work with younger people and they give me good tips about doing things my generation didn't think of.

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    1. Yes. You’re absolutely right. I feel it’s wrong to underestimate millennials. They think differently than generation X. But millennials do a few things much better than generation X.

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  2. I love this! I've never understood why millennials get such a bad wrap. They've really got their stuff together.

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    1. They will get their due recognition eventually. That’s what I believe. They are saving money. They are trying to improve their credit score. What more will they do?

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  3. I'm somewhat confused of What kind of Generation I am . is it Generations X,Y or millennial. Anyway this generation is kind of more aware about Because of lack of financial knowledge some baby boomers lead to us.

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    1. You belong to generation X if you’re born anytime between 1965 and 1979. You’re a millennial if you’re born between 1980 and 1994. You belong to generation Z if you’re born between 1995 and 2015. Yes. This generation is more financially aware than generation X. That’s true.

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  4. Honestly, this is what keeps me going. As a millennial, it helps to see how others are also investing in their future- your credit IS your future. Keeping an eye on it is essential.

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    1. Well said Fatima. Our credit is our future. If you neglect our credit, then we will be in trouble.

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  5. YES. THANK YOU, Us millenials always get such a bad rep, and there's countless blogs out there about how we're killing the economy so it's nice to come across one that actually stands up for us and proves we're just smart with our money :)

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    1. Thanks for the appreciation. Genuinely, I feel that millennials get blamed unnecessarily. I think they are far more practical than Gen X when it comes to managing finance.

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  6. 5 great reasons to make me happy to be a millennial

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  7. Interesting information about Millennials. Thanks for sharing!

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    1. Welcome. It’s just a different perspective, which I tried to cover.

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  8. It is very subjective. I think this can speak for many Millennials in general, but not all. In my experience with having successful credit, I think one of the best ways to help is to use credit and make payments on time. Continue borrowing and paying on time. Pay the monthly payment. And making sure you are able to pay off what you borrow. This helped me personally when my credit score was poor. When I was in college, I went crazy with the credit and didn't have anyone tell me to stop. I learned later on and realized what my downfall was.

    Stock trading is a great way to invest. Mutual funds or any long-term investment isn't instant money and are usually great money makers years down the road. If you are looking for instant money (risk and reward) it's crucial to just buy/sell (day and/or options trading) stocks. I haven't made much investing, but am currently a shareholder in several companies.

    Great blog post. Very informative.

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    1. Thanks for your input Sarah. Can’t agree with you more about the ways to build credit.

      Stock trading is a great way to invest only when you’re financially strong and can take risks. I have seen many people losing thousands of money in stock investments. Mutual funds are a safer option than stock investments. You won’t see instant profit. But when you wait for a long-term, you’ll see profit for sure. Mutual funds are selling like hot cakes now

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  9. Yyyaaaassssss! Kudos to that extra-pay we are getting now. I am certainly not ready to repeat the mistakes those that came before me made.

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    1. Good! That’s how millennials should feel and think actually.

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  10. hm honestly I even didn't know before who are millennials, but seems like I'm one of them, really interesting. thanks for this information

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    1. My pleasure. Well, if you’re born between 1980 and 1994, then you’re a millennial.

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  11. I'm very interested to know who came up with this information? I know a number of millennials that don't fit any of these.

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    1. Which information are you talking about? Can you please elucidate?

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  12. The millennial way is certainly the best route for smart investments. You no longer depend on the whims and fancies of few supposedly learned people.

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    1. Yes. They have learned a lot from the mistakes made by Gen X. They trust apps more than stockbrokers. And I feel that’s how it should be.

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  13. Being a mom of millenials, I can say these 5 financial achievements are true. They are more wise with money, they work hard to secure a better future, and they do not jump into marriage without having ample savings and a stable job.

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    1. Yes. That’s what I love about millennials. They are the practical lot. They don’t make whimsical decisions. They get married only after saving money.

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  14. I love the millennial generation. But I do make some whimsy dumb decisions too.

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    1. Hope you will soon start controlling your whimsy decisions.

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  15. You got great points here. Millennials have better technology on hand to help them with so many things Gen X didn't have when they were millennials themselves. (by Jocelyn @ Hip Mama's Place)

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    1. Yes technology have come up with so many easy ways that will help Millennials to achieve their monetary achievement.

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  16. As a millennial myself I am quite happy that someone understands and stands up for us. Great points as well.

    -Lyanna Soria

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  17. Thanks for the appreciation. Hope you will achieve more financial targets in years to come.

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