- Financial planner Kenny Senour says that millennials are very conscious about their spending.
- Millennials find purpose in their work, and that sense of purpose guides their financial decisions.
- Millennial couples may also be better at talking about their finances with each other than previous generations.
- This article is part of a series focused on financial empowerment for millennials called Master Your Money.
Millennials are sick of being told to find a second job to pay for the rising cost of living. They’re tired of being scolded for buying lattes and avocado toast.
When it comes to money, millennials can make the most of any generation, but millennial wealth expert and financial planner Kenny Senour corrects some major misconceptions about how millennials spend their hard-earned money.
Here are four spending habits that set millennials apart.
1. Millennials are aware of their expenses
“A lot of the millennials who come to work with us are relatively frugal,” says Senour. “They are aware of their spending and come to financial planning for guidance on how to spend their money.”
Senour says the old adage of telling millennials that “cutting back on avocado toast will help you save for a house” paints millennials the wrong way. Contrary to popular belief, many millennials are actually very conscious of their own spending because they know how much the cost of living has risen for their generation.
2. They need purpose in their work
“Millennials really want to find purpose in their work,” Senour says, adding that this attitude contributes to The Great Resignation, the movement of workers leaving their jobs and demanding better pay, benefits and treatment from employers.
“This is also why many millennials are much more entrepreneurial,” says Senour. “That’s why millennials are more likely to say, ‘I’ll start my own business,’ or ‘I’ll earn my own income.'” That sense of purpose can lead to better long-term financial decisions because millennials are motivated to stretch a dollar on another source of income.
3. Millennial couples talk more openly about their finances.
“Couples who come to work with us are generally on the same page when it comes to their financial goals,” says Senour.
In contrast to older generations who may communicate differently about money, millennials spend time discussing their financial goals for their society, for themselves as individuals, and for their family.
4. They ask for help
Senour says millennials are asking for help when it comes to optimizing their cash flow.
Why millennials grew up in 2008
, they are more likely to put extra money aside from their emergency fund in cash savings. Senour helps millennials find other ways to help that money grow, but millennials usually come armed with their own research and the advice of others.
“Millennials are really good at talking openly with each other,” says Senour, “which I haven’t necessarily seen with my older clients.”