- Financial planner Kenny Senour says millennials are extremely aware of their spending.
- Millennials find purpose in their work, and that sense of purpose guides their financial decisions.
- Millennial couples may also be better at discussing their finances with each other than older generations.
- This article is part of a series focused on millennial financial empowerment called Master your Money.
Millennials are sick of being told to get a second job to pay for the rising cost of living. They’re tired of getting scolded for buying lattes and avocado toast.
In matters of money, millennials may get the most flack out of any generation, but millennial wealth expert and financial planner Kenny Senour corrects a few major misconceptions about how members of this generation spend their hard-earned cash.
Here are four spending habits that set millennials apart.
1. Millennials are aware of their spending
“A lot of millennials that come to work with us are relatively frugal,” says Senour. “They are aware of their spending, and they come to financial planning asking 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 home” paints millennials in a bad light. Contrary to popular belief, many millennials are actually very aware 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,” says Senour, 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 a lot of millennials are so much more entrepreneurial,” Senour says. “This is why millennials are more likely to say, ‘I’ll start my own business,’ or ‘I’ll make my own income.'” That sense of purpose can lead to better money decisions in the long run because millennials are motivated to stretch a dollar into another income source.
3. Millennial couples talk more openly about their finances
“Couples that come to work with us are usually on the same page when it comes to their financial goals,” Senour says.
In contrast to older generations who may communicate differently about money, millennials spend time discussing their financial goals for their partnership, for themselves as individuals, and for their family.
4. They ask for help
Senour says that millennials ask for help when it comes to optimizing their cash flow.
Because millennials grew up in the 2008
, they are more likely to keep extra money, aside from their emergency fund, in cash savings. Senour helps millennials find other ways to help that money grow, but millennials typically come armed with their own research and advice from others.
“Millennials are really good at talking openly to each other,” Senour says, “which I haven’t necessarily seen with my older clients.”