Millennials are often criticized for being reckless and financially irresponsible. But this is not necessarily true. Millennials have also achieved various financial goals for which they ought to be proud of. Here are a few of them.
1. Millennials get a pay hike when they ask for it
Millennials are more courageous than baby boomers and Gen Xers. This is what Bank of America’s report says.
Bank of America’s report reveals that 46% of millennials have asked for a pay hike or a promotion in the last few years. They have gathered enough courage to request a raise and 80% of them have received it. As per the report, Gen Xers and baby boomers lack the courage to ask for a pay hike or a raise at work.
2. Most millennial borrowers have stellar credit
It’s wrong to underestimate the capability of millennials financially. At least, the mortgage industry feels so. According to Sallie Mae, most home loans are given to millennials with a good credit score, usually in the 700 plus range.
According to CNBC, the average credit score of millennials was 703 in 2019, which is technically a good credit score. And, as per the 2019 Experian Consumer Credit Review, the average credit score of millennials has gone up by 25 points since 2012.
Probable reasons behind the increase in the FICO score are given below:
1. Lucrative career growth
2. Getting jobs
3. Achieving financial milestones
It seems that millennials have finally understood the importance of a good credit score. A stellar credit is necessary for various reasons like:
(i) Qualifying for the best rewards credit cards
(ii) Qualifying for balance transfer credit cards
3. Millennials manage money smartly using technology
Millennials know how to use technology very well. They use it to create a budget, make credit card payments, automate savings, and so on. And, they do it within a few seconds.
If someone wants to follow a budget, he simply download a budgeting app on his smartphone. Budgeting apps like Mint help millennials to track and monitor savings 24*7. If someone wants to automate savings, then he can do it through a mobile app easily. This is a major difference between millennials and Gen Xers. Gone are those days when people were dependent on checkbooks or bank officials for any banking related issue. Most things are done online nowadays.
4. 35 Percent of millennials are homeowners
According to reports, 35% of millennials are proud homeowners. This figure is indeed less than the national average. However, it’s equally true that a boost in millennial homeownership has helped the real estate industry indirectly. It has led to the overall growth of homeownership for the first time in the country after the Great Recession.
Millennials deserve special applause since buying a home is not a piece of cake in this current economic situation. Student loan debt and lack of steady wage growth are already taking a toll on the millennials financially. The fact that millennials are still buying a home in spite of so many hurdles is really commendable.
5. Millennials are saving money every year
Without savings, you can’t think of leading a debt free life in this country. According to a survey conducted, two-thirds of millennials have saving goals. And, the most interesting point is that they can save dollars every month. Around 16% of millennials have already saved $100,000 in their checking accounts, which is not a small figure. As per the results of the survey, 59% of these people feel financially protected owing to the money they have saved. This proves that millennials know how to earn and save dollars. It’s wrong to assume that they can’t keep money in their hands.
Last but not least, millennials deserve appreciation for yet another reason. Millennials are smart investors. In fact, millennials are better investors than Gen Xers.
Earlier, millennials were completely dependent on stockbrokers for trading stocks. The stockbrokers used to charge high brokerage fees for buying and selling shares. In fact, thousands of stockbroking firms mushroomed in the last decade just to milk money out of innocent investors. Stockbrokers have only one simple job to do. They have to buy and sell stocks of the investors and earn a commission for each trade. This means stock brokers reap profits from all aspects – both from buying and selling shares.
Many stockbrokers even buy and sell stocks of investors without even consulting them just to earn a commission. Thousands of investors lose lots of money due to fraudulent transactions every year, and they have to suffer financially.
Millennial investors are tech-savvy people. They do stock trading online within a few clicks. They are not dependent on stockbrokers anymore. They do stock trading through smartphone apps and avoid getting scammed by money-mongering stockbroking firms.