While individuals in their 20s and early 30s may still be figuring out their place in the world, I have noticed just how different younger people are today.
When it comes to saving money, a lot of millennials seem to be falling short. Some may not even have a savings account.
Their spending habits are very different in that they are more conscious about how people see them. For example many of them save up just to buy the latest mobile phones.
For some, the latest mobile phones do have important uses. However, some millennials may not be even using the other features of an expensive phone. What they want is to “belong”.
Sounds familiar? Of course, we have been through the same phase when we were younger. But the cost of these high-end mobile phones these days is almost equal to the 4 months’ salary of some.
I have seen a post on Facebook once when the cost of siling labuyo was almost P1000 per kilo and a lot of people reacted. However, the cost of the latest mobile phone can be as much as P75,000 (great for selfies!) but, few complain about it.
Millennials tend to spend more than other generations for comforts and conveniences like:
- Taking a cab instead of riding a bus, a train or a jeepney
- Drinking expensive coffee
- Dining out often
- Shopping here and there
- Gym membership
Times have changed, back then we used to dine out with the family only when celebrating special occasions. Taking a cab back then was the last resort when we were running late for work or a meeting. Having new clothes was more common during birthdays and Christmas.
I can tell that parents of millennials are more lenient with their children. Some parents encourage their children to be that way.
One reason is, probably when they were younger, these parents were more distant from their own parents. I have noticed that parents now have become their children’s buddies.
While this is a great way of becoming a part of their children’s lives, I think that there should also be boundaries and that learning to value money should be instilled in young minds early on.
Another reason why many millennials seem to be always short of money, even if they just received their salaries, is that some malls schedule their sales during payday.
Thus, even if they don’t plans to buy anything, the mall sale entices them to shop. By the time they get home, they realize that they bought something that they do not really need.
While the spending habits of many millennials are very different from how we were during our days, it’s also noticeable how goal-oriented these young individuals have become.
Their drive to reach their goals is far better than our parents or grandparents. This is probably because today, there seems to be an endless competition among everyone. They may feel that they need to prove something to others or to themselves. Once they set their minds on something, they find ways to make things happen.
Many millennials actually write their financial plans annually. This only shows that they really want to succeed early, while Gen X or Baby Boomers only achieved success in their late 30s.
Millennials also have a lot to teach older generations. However, if they spend more than they earn, that is a different story.
Armando Bartolome’s writings appear on GoodNewsPilipinas.com every Thursday.
(Armando Bartolome is known as the Philippines’ Franchise Guru, a mentor to numerous micro entrepreneurs who are now themselves big names in the industry. This article is reposted with the author’s permission and was previously published on The Business Mentor column posted by ABSCBN News. For questions and more information, you may contact Armando “Butz” Bartolome by email: firstname.lastname@example.org or on Twitter @philfranguru. His website is https://www.gmbmsglobal.com/ )