In a bid to be in control and manage their finances, almost one in three millennials use online tools to track spending and budget their finances, new study from Zip said.
Furthermore, with 7% millennials making use of budgeting apps, fewer are using credit cards and tilting towards buy now pay later apps such as Zip and Klarna. To ensure they don’t incur interest through unpaid balances, millennials are increasingly choosing interest-free BNPL providers.
The key reason driving millennials to be more mindful of their expenses compared to their boomer parents are the risks of not being able to meet key financial goals such as buying property, paying back student debt and saving for retirement.
As a result, millennials are choosing to save more by delaying homeownership, cutting back on alcohol, spending more on public transport and choosing interest-free payment options.
Additionally, making choices such as depositing money into savings accounts, investing rather than splurging and choosing financial technology services, millennials are aiming for a stronger financial future, it said.
This report comes at a time when millennials are facing massive economic disruption caused by the ongoing pandemic, technological change and accelerated globalisation. Consequently, it will change the ways the demographic will trade and do business, forcing companies to examine new ways of marketing.
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