Millennials are able to master certain money strategies that older generations failed to learn, primarily because many of them had to face the challenges of a struggling economy and a difficult job market.  They are much more willing to exercise frugal techniques that can help in reducing their expenses, welcome life experiences over material things and even consider saving early for their retirement years.

Because of the recent recession, Millennials choose to veer away from materialism as they take a fresh perspective of their career and money.  This generation has also learned to appreciate life experiences over material things.  You will see many Millennials using their disposable income to travel and attend fairs and concerts.

Based on the survey conducted by “Fidelity” in April 2014 on 152 adults with ages ranging from 25 to 34 years, it was discovered that Millennials have the tendency to worry too much about their finances.  40% of the volunteers claimed that they worry about their finances at least once every week.  They start to be concerned over money and finances even at a very young age.  The majority of Millennials start to save for retirement at an early age.  This is very different from older generations who did not concern themselves with retirement worries during the same age because they have always believed that they can live by the pensions that they will receive.

The Millennials also have the benefit of having witnessed the economy and their parents, specifically, suffer through hard times.  This is probably the main reason why Millennials are very keen on increasing their savings and handling their finances more conservatively.  As much as possible they want a stable financial status at the early age. They do not want to experience what their parents experienced. Here are the top three financial strategies embraced by Millennials that allow them to be prepared for whatever life will throw their way:

1.    They embrace life experiences over material possessions.  Based on a survey conducted by Eventbrite with more than 2,000 adults, 75% of Millennials claimed that they prefer spending their hard earned money on life experiences than on material things.  This is a big contrast to older generations that preferred luxury items such as grand homes and expensive cars.  The survey also showed that millennials attend 10% more events compared to older generations.   Millennials believe that when they spend their money on experiences, they are able to enjoy three units of happiness for only one price – the anticipation of the experience, the experience itself and the lasting memories of the experience.

2.    Millennials talk more openly about finances and money.  Based on the Fidelity survey, it was shown the 75% of Millennials claimed that they have no issues with discussing their savings and investments with their parents.  They are willing to listen to other people’s opinion to make sure that they are making the right decisions.

3.    Millennials save more for their future.  As early as their 20’s, millennials are already saving for their retirement years.  The Fidelity survey showed that more than 50% of millennials said that saving for retirement is their top priority.

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