It is estimated that almost 64% of India’s population will be in the age group of 20 to 35 years by 2021. These guys, referred to as millennials, are going to totally reshape our country’s economy. So, what exactly are they doing with their money? Let’s find out!
Who are they?
Also known as Generation Y or Gen Y, millennials is the term given to all mortals born between 1980 and 2000. In the current scenario, almost 60% to 70% of India’s population consists of people under 35 years of age.
How do they spend their money?
According to a survey by ICICI Lombard:
They spend almost 69% of their monthly income on family, household items, EMIs and entertainment. Out of these expenses, a whopping 50% is spent on family and household items.
What are their worst money habits?
- They fail to set a budget, hence, they aren’t able to save enough.
- They are conservative investors. So, they refrain from investing in risky instruments (like Mutual Funds).
- They are greatly influenced by their peers’ financial decisions.
- They postpone their retirement plans.
- The word ‘frugal’ doesn’t exist in their dictionaries. They love to spend on luxuries, leisure, and entertainment.
- They use their Credit Card to pay for anything and everything.
What are their top saving goals?
- Health – These guys don’t mind spending on gyms, aerobics, yoga and healthy foods.
- First Home & Car – Everyone wants to own a house and a car. The millennials are no different.
- Children’s Future – Almost 65% of Gen Y is saving up for their kids’ education, marriage, and other expenses.
What do their investments look like?
According to a survey by ICICI Lombard, this technology-savvy lot believes in:
- Buying Health Insurance at an early age (before they turn 30). However, they hardly understand the benefits of it.
- Almost 43% of the Gen Y population believe that they’re conservative investors. They prefer traditional investment instruments and are not aligned towards taking risks with their hard-earned moolah.