FINANCIAL PLANNING: Millennials are good at bargain hunting

Millennials are ambitious, technologically savvy and have a never-ending thirst for new experiences. From their love for all things digital to their obsession with travel as a 'pastime', the millennial generation is focussed on living in the present.

The label 'Millennial' invokes a number of presumptions. The 18-34 year-olds or those born between 1980-2000 are often looked down upon as being financially irresponsible. They are criticised for their over dependency on technology, they are type cast as lazy and unreliable. But the stereotypes and criticism attached to their money decisions could be unfair. Let us see why the following myths about millennials and their investment habits are not always true.

Millennials don't invest

On the contrary most millennials like to read up, research and start investing early in their career. Millennials often face flak for not giving enough importance for money management. Surprisingly, the truth is that millennials are motivated enough to plan their financial future and are well in control of their money. They have clearly defined goals and intent. They like to be in charge and take control of their finances early on. Millennials use technology in many ways to save, invest and even file taxes on time.

Millennials don't know the value money

Younger shoppers are always on the lookout for good deals, coupons and promotions. Be it looking for travel deals or ecommerce sales, finding a good deal can have a significant impact on their purchasing decisions. Most millennials are extremely good at bargain hunting and finding the right deals. They don't like to be taken for a ride. They know exactly what they want and at what price to get it.

Millennials don't worry about tomorrow

This is further from reality. They want a secure future and some plan quite systematically. Millennials have a sharp focus on their goals, they are conscious about the risks they take and have a clear path laid out for their retirement. Though not exactly like the older generation, their priorities may seem unique yet they like to be in the know of all options. They are thoughtful about taking a loan or spending on high ticket items. They are particular about having a health insurance, saving a percentage of their income for retirement and investing their money so that they can be independent and covered.

Millennials don't want to buy houses or own cars

In spite of a 'don't own' economy growing over the last few years, it simply has not made conventional purchases less exciting for the millennials. Though foreign travel and gadget indulgence is high on their list, they still attach an aspirational value for buying a house. Though the large ticket size is a deterrent, millennials do consider buying home as an important long term goal.

Millennials prefer robo advisors over personal advisors

Technology can make everything better. From ordering food to booking cabs, technology is an integral part of a millenial's everyday life. For tech savvy millennials, robo advisors definitely seem like a perfect match. In spite of the growing popularity of robo advisors, millennials still prefer to opt for a personal advisor when they want to take their financial planning a notch further. Though they might start with a robo advisor, as their investment needs evolve, millennials trust a personal financial advisor who can offer a more customised approach to their money planning.

The writer is founder and managing partner, Germinate Wealth Solutions LLP