5 Things to Know About a Millennial’s Financial Health
Millennials or Generation Y are people born between 1982 and 2004. Currently, they constitute a third of India’s population, and 46% of the current workforce. For many, this generation is an enigma when it comes to many things. Whether it’s managing relationships, careers or wealth, they’ve presented the world with new ideas and strategies.
The financial sector has been equally intrigued by the millennial psyche or mindset. It goes without saying that if banks or financial institutions want to target this generation, they need to at least attempt to de-mystify its thought process. Let’s take a look at what we at HDFC Bank have unravelled in our findings.
Some financial habits of millennials tend to come across as alarming to the previous generations. Especially Generation X who have worked hard to get themselves out of financial ruts.
These habits include spending more, experimenting with investment products, and enjoying the benefits of Credit Cards. However, the broader view is that millennials while splurging on interests or passions, are equally aware of the need to build a corpus for a secure future. Moreover, they may be prone to experimenting with new financial products but will choose traditional options too.
These are some research findings conducted on millennial behaviour:
- Contribute 70% to the total household income.
- Wealth is the top life goal for 80% of millennials.
- 91% of millennials believe in making their financial decisions by themselves without having to depend on someone.
- 28% of millennials eat out at least once a month.
- 36% of Indian millennials have a fitness app installed on their phones.
- 56% of millennials invest in Mutual Funds.
- 50% of investors in cryptocurrencies are millennial
- More likely to upskill themselves with vocational and technical courses
- Source:The Economic Times
Older generations are defined by meticulous financial planning from an early age. They needed resources because the majority married younger. This also meant that they started families sooner and had to look for their own homes.
Millennials, on the other hand, are not worried about the long term. Studies show that they stay single longer. The majority would rather spend on things like travel, food, gadgets and life experiences, than paying off home loan EMIs. Finally, retirement planning is at the bottom of their life goals list.
Independent Financial Decisions:
91% of the millennials believe in making their own investment decisions. Events like the financial crisis of 2008 diminished their trust for financial planners and experts. They prefer taking intuitive investment decisions. This generation is also open to taking calculated risks of investing in stocks and mutual funds. They also invest in fixed income products and term insurance.
Shorter Career Spans in One Place:
Gen Y is defined by job-hopping because flexibility in work hours and conducive work environment are a priority. They’re also continually investing in skill upgrades. The reason for this behaviour is that many of them want to move ahead in their professional life and look look for better opportunities.
Tech-Savvy and On-the-Go:
Mobile apps are a favourite of this on-the-go generation. From social media to fitness, even banking, everything is stored in multiple apps. Millennials are also gadget addicts and want the best or the latest in their collection. From smartphones to gaming laptops or even airpods, they want it all. Since all these are significant purchases, this generation also looks for easier and faster ways to finance their tastes. Credit Cards are a must-have product because transactions take less time. Moreover, this generation knows how to optimise Reward Points and CashBack offers.
To address all these and more, HDFC Bank has launched the Millennia Credit Card. A card suited for a generation that’s tech-savvy yet passionate about their goals. Millennia Credit Card is meant for those who’re bold enough to experiment and know how to make the best of everything.
So, why wait? If you’re millennial and are looking for something better, apply now for the HDFC Bank Millennia Credit Card.
Read more on why millennials should be having a Credit Card here.
*Terms and conditions apply. Credit Card approvals at the sole discretion of HDFC Bank limited. Credit Card approvals is subject to documentation and verification as per Banks requirement.