Millennial Money

 

There are a few stereotypes that we, millennial generations, are often associated with. One, we would rather be paid less than having a job that we don't like. In other words, money can't buy our loyalty? Consequently, we are the generation that normalizes job hopping. However, according to a Forbes' article (click here), job hopping is not unique to millennials. It's just what young people do. The question is would millennials stop job hopping when they reach maturity? 

The answer to this question should be available by now, because according to the textbook definition, "the millennial" refers to a generation of people who were born between 1981 and 1996. In other words, we have already had people who are as old as 39 and as young as 24. If we can classify ages over 35 as mature ages, then we can start recording the patterns to find out whether millennials still job hopping in their mature years. Indeed, there has been a study (read here) about this and the answer is we don't job hop as fast as the generation before us (Gen X). So probably the hypothesis that all young people hob hopping is true. 

The other stereotype is that millennials are not good with money. We are practically financially illiterate. Publications upon publications show that home ownership among millennials is low (read here). Some argue that this trend has something to do with the shift of priority and principle among millennials. While the previous generation values financial stability, millennials value experience and are more politically active. How much of this is true? Only us as individuals can judge for ourselves our day to day experience. 

From what I have experienced, there is some elements of truth in both of the stereotypes and the research outcomes. I've seen many of my seniors, including myself, who are not afraid to quite their jobs when the job or the working environment do not meet their expectations. To some extent, this is a good thing, because it emphasizes that employee has an equal power to the employer. Both need each other. But it also has its drawbacks. Our job hopping habit shows that we are not that resilient. We escape the situation that we don't like, as oppose to changing it. 

What about money? We are probably the most careless generation with regards to money. There are many factors contributing to this trend. A, we live in an age of consumerism. When companies pay millions of dollars for advertisements to tempt us into buying their products - we are practically trapped. B, there is a trend among millennials who choose quality over quantity. This decision could be driven by environmental factors as well as health factors. But quality means higher price. So, even if millennials choose to buy organic foods for environmental and health reason, they still have to pay more. 

The question we have to ask: do we need to celebrate millennial way of living or should we change it? After all, it is our parents' strive to have a stable economy that we could enjoy what we have now. Now it's our turn to think about our future children. Do we want them to have a better life? 

It would be incorrect to assume that all millennials are the same. While being spendthrifts are common, there are also millennials who take the other approach to financing. Saving the environmental is one of the reasons. They believe that minimizing carbon footprints is the only way to save the planet. Because of it, they don't buy as much. 

I take the second approach. I deliberately chose not to spend too much money on things like clothes and things that have temporary values. I do that because I too believe that we should be minimizing our carbon footprints. But my main reason is that I want to have a stable life. Coming from a family who did not have much, I learned from early on that I need to be wise with money. Since I was a kid, I was taught that I could only buy a pair of new clothes on a big occasion like the Eids (Islamic celebrations) or when I really need it. I am very proud that my shopping decision still follows the principle that my parents taught me. 

Now that I am 26, I try to practice a lifestyle that does not glorify luxury. I have seen many of friends who would not think twice to enjoy activities that cost them a big sum of money. They would go to a concert that costs hundreds of dollars, they would eat at a fancy restaurant that costs half of their monthly salary, they would buy a pair of shoes that cost them a lot. I just don't do that. In my six months in Canberra, I ate out only for less than five times. I prefer to cook and save the money for things that are valuable.   

About saving. I don't know much about finance. What I do know is that, I should do the opposite of what a capitalist businessman would do. If a businessman would spend as less capital as possible and earn as much as possible, I would do the exact opposite. I spend as less as possible and save up as much as possible. Even though I am doing my postgraduate now, I still try to save up. Fortunately, I still have a stable income from my scholarship which is paid biweekly. I save what I have left after I pay my rent, wifi bill, buy grocery,  and other miscellaneous.  

So how are you with money? If you are a millennial, do you think we as a generation should change our attitude toward money? 

Note: 

I deliberately choose this title, because I am a big fan of CNBC show #millennialmoney. I think it's a good show, where we can learn from young people who are both good with money and those who are not.