Four keys to promoting savings among the 'millennials'
The 'millenials' are defying all the stereotypes: they are more careful with their savings and more cautious with their finances than most people might think. The latest studies show that young people between the ages of 18 and 35 are concerned about the future, in spite of the obstacles they face in the present.
This is the most technology-savvy and best-educated generation of all times. However, according to a study by BBVA Research, they are still unable to live on their own, because of the difficulty of finding a job and a home. The situation is complicated for young people but the most recent surveys show that they haven´t given up and that they are managing to plan their finances.
According to the study Innovation Trends: the Millennial Generation published by the BBVA Innovation Center (CIBBVA), 64% of young people surveyed regarded themselves as savers. However, the millennials face a great challenge: financing their independent life, surrounded by technology, without taking on financial burdens and with a future savings plan. A few simple steps can help achieve this:
1. Use apps to reserve a certain amount of money each month for savings
In this scenario, the mobile phone turns into the best savings instrument. One option is to use the apps provided by the bank itself, since many of them automatically put aside an amount that has been selected previously - before monthly expenses begin to come in - as if it were an unavoidable expenditure. In order to use these applications with all the security guarantees, it´s necessary to download only the official ones and keep them updated.
Apart from these bank applications, there are others that allow you to carefully control spending. They have functions such as registering expenses and income, sending alerts about overdrafts or commissions, and creating budgets, among other things.
2. Setting goals that motivate
A trip with friends in the summer, going abroad to study, a pair of running shoes, a new mobile phone… every young person should set savings goals that motivate him or her, but always in a realistic fashion, so as not to become frustrated and abandon the habit.
3. Compare before buying
Before buying any product, the best thing is to check the social media of the brand or the business, in order to find its best offers and read the comments of other buyers. You should also read the consumer forums and the comparison sites, where they offer information about the best prices in a single click. Before heading out to buy, the best thing is to give a last look at the mobile to see if there´s any last-minute offer.
4. Avoid compulsive buying and unnecessary expenses
One good trick is to wait a reasonable amount of time – between one and three months is a recommended period – to see if what you want is really necessary. If you buy it and later cease to need or use it, the best thing is to sell it through a secondhand purchase-and-sale application. Surely someone will need it and put it to good use.
In the Center for Financial Education and Capability, you will find all the relevant information about financial education around the world.