Kids these days just don’t know the real value of a dollar… Or do they?
According to a recent Bankrate survey, Millennials are walking a fine line between “penny pinching” and investing their money wisely. In the past couple of years, Bankrate said, Millennials had a habit of “clutching their piggy banks” — a response that was expected after the financial crash of 2008.
The big question has been whether Millennials will continue holding onto their money for dear life, as their grandparents and great-grandparents did after the Great Depression — but luckily, it seems that 20- and 30-somethings paid attention in History class and know the importance of spending money after a financial crisis.
Despite the high student loan debt of this generation, Forbes recently reported that Millennials appear to be managing their money in a careful yet constructive way. Instead of refusing to invest in Wall Street, young adults are expressing more interest in learning about their options and then are willing to take risks when they are confident.
Yet another possible problem is coming forward, a recent TIME article stated. The majority of Millennials don’t consider their retirement savings plan to be “aggressive” — indeed, they’re having a hard time just paying this month’s bills, much less thinking 30 years into the future. Winning the lottery and receiving a lump sum payout isn’t on the horizon for most Millennials either.
Despite this, TIME noted one surprising trend: 52% of Millennials state that they’re considering purchasing fixed indexed annuities, making this generation more interested in fixed indexed annuities than any other generation.
Even though there are plenty of reasons why annuities aren’t good investments, it seems that Millennials are still willing to take that risk — perhaps because they know that their current retirement options are slim, or perhaps because they’re finally starting to feel more comfortable with taking financial risks.