Contrary To Popular Belief, Millennials Are NOT Frivolous With Their Money

Some sections of the media have constantly painted millennials as frivolous spenders. Our policymakers and leaders have gone a step ahead and blamed millennials for killing industries.

Case in point? The time our finance minister, Nirmala Sitharaman conveniently made millennials and their choice of travelling by cabs the reason for the slowdown of the automobile industry. This couldn¡¯t be far from the truth because, in India, millennials are the key consumers for most retail markets.

According to a report from Morgan Stanley, released in May 2019, millennials are redefining India¡¯s financial success story. People in this age group make up 46% of India¡¯s workforce and contribute 70% of the national household income, which allows them to play a greater role in how our national growth will be formulated.

¡°Millennials are generally those who were born in 1986 to 1996, making the oldest millennial 33 years old and the youngest 23. We are starting to witness massive consumption power from millennials as they enter their prime spending years, a fact brands and companies are now taking note of,¡± Deepak Gandhi, an analyst at Accenture told Indiatimes.

What millennials will spend on.

A study by Deloitte Global, released in March 2019, clearly outlines that millennials will continue to spend money on things that make their hectic and fast-paced life easier. For instance, coffee, travelling, experiences like concerts or comedy gigs and even gadgets will continue to lure in millennials.

But does that mean millennials won¡¯t have money left to save for a house or a car like the previous generations?

Millennials are way more intelligent than most people are ready to give them credit for. A report by BankBazaar released this July, clearly states how millennials are empowering themselves by making independent financial choices. This survey covered 1551 respondents, both men, and women, between the ages of 25 and 35 in 12 Indian cities.

The same survey also debunked the misconception that millennials are clueless about financial planning. In fact, as per BankBazaar, millennials ranked ¡®wealth creation¡¯ as their topmost goal, with 69% ranking ¡®buying a home¡¯ as their biggest aspiration.

¡°I have been offered a lot of unsolicited financial advice by a lot of people because I am a millennial. I can speak for myself and say a portion of my salary is saved for my dream car, another portion goes into mutual funds and the last quarter is spent on dinner, drinks, and travel because I deserve to be happy after working endless hours every week,¡± said Mahika Jain, a 24-year-old, advertising strategist, based in New Delhi.

Millennials might have disrupted the 9-5 work routine, might have given rise to the concept of working remotely and killed shopping in brick and mortar stores, but one thing is for sure when it comes to spending money, millennials are anything but frivolous.