Millennials and Money. Our generation has a vastly different experience and approach to money than those who came before us.
We are not baby boomers with high interest rates to contend with but Final Salary pensions and relatively job security. (miners excepted!)
We are not Gen Xers who benefited from massive property equity growth during the 90’s but have lived through two stock market crashes at an early stage of their lives.
There is no easy millennial money. Whereas friends of mine who are 10 years older than me are sitting on hundreds of thousands in equity in their properties many of my peers are unable to save even modest deposits on property. Partners in law firms scraping together £10K for a deposit is not unheard of.
Is it because earnings are lower? Possibly but their not significantly lower.
Is it because property is so much more expensive? Probably but thats not just it.
I think there are lots of areas where Millennials simply refuse to go without or are used to some expenses that older generations had to embrace as ‘extras’.
For me my smartphone is not an ‘extra’. It is so integrated with me that old tech is a physical hindrance to my life. Add to that the level of data required and to spend £50+ on my phone bill is seen as a necessity.
Until recently my parents had a 1gb internet data package for their home and my dad would go nuts every time my family came to stay because his 1bg would be used within hours of our arrival at his house! Perhaps we are unusual but when we upgraded to Fibre broadband I signed us up on a 20gb packaged which I though would be ample. Turns out we use between 150gb and 400gb. Perhaps have 2 youtube viewing children and 2 netflix using adults along with other OnDemand Tv and Music streaming uses a lot of data.
This change in lifestyle has dramatic impact on your approach to finances. When reviewing our budget recently we were discussing ‘essential’ items and Netflix was deemed necessary, as was Spotify but my Baby Boomer parents would see these as luxuries.
These £5-10/m services add up!