Disclaimer: Originally published in July 2018. It is being republished since it still remains an interesting topic till today.
It’s easy to restrict the millennial generation into a digital box, where every action, every question or answer and any human interaction is transacted using a screen. As far as the world of financial planning is concerned, putting this cohort into that box would be a big mistake.
Millennials are generally perceived as the ‘high on risk’ generation but they are no longer all that young. They are old enough to make their decisions, and that includes those of finance and investing, according to a report by a banking website, ‘Aspiration Index 2018 – Decoding Indian Millennials’.
The study included salaried persons in the age group of 25-35 earning at least ₹30,000 per month in metros and ₹20,000 in non-metros who have shopped at least once in the last month, covering 1,550 millennials across 12 cities in India.
Value in thoughtful financial planning
Busting all myths about how millennials are careless with money, we see that 91% of millennials believe in making their own financial decisions without much help.
Millennials play it safe. About 56% invest in instruments such as mutual funds in comparison to 57% investment in fixed deposits and 36% in provident fund and public provident fund accounts thus acting as risk-averse investors.
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Are millennials aspirational enough?
Millennials in South India are the most inspirational lot, at 88.57% in comparison with the national average of 87.43% thanks to reasons such as higher literacy rate and access to better opportunities in the region.
Among cities in the South, Chennai fared the best with 88.86% millennials clear about their goals and turning them into a reality.
Women outscored men by scoring 87.43% against 86.29%. “Growing career choices for women provide them more avenues for financial independence. This, combined with a steady shift in societal norms, makes women feel that they can both dream and achieve,” said the report.
What about life goals?
Growing up, like any other millennial I had the perception that our generation is driven by money and this perception will be somewhat true for generations to come.
80% of millennials chose wealth as their top life goal while relationships and fame took second place with a majority of 66% votes for each.
Health was also high amongst the charts with 65% millennials choosing it as their life goal, followed by personal growth accounting for 63% and image for 60%.
What’s the most important wealth growth for millennials?
Somewhat similar to those of the previous generations. Owning a house.
Unlike the previous generations, millennials highly rate foreign travel, gadgets, keeping up with the latest fashion trends and having a big fat Indian wedding. Well, that’s not changing anytime soon.
Self-image is really important, isn’t it? Hold on, even buying a car is equally important to them.
The greatest wealth is health
While India’s millennials understand the importance of being physically and mentally fit, they aren’t so keen about following a regular exercise regime to achieve this.
While 47% of the millennials understand the importance of a fixed fitness regime, 56% believe it is key to remain physically and mentally fit.
If you’re a millennial, know this about financial planning: Time is still on your side.
Overall, things seem to look good. Millennials are high on aspirations and are all set to conquer them.
Image Credits: Google Images