Generation Y, what are you learning from Generation X?

Every generation has strengths and weaknesses, and differences in investment styles and expectations can sometimes create tension. For example, in the old times, the meaning of success for Generation X was a stable job, car, house (apartment), and family. It was important for them to create a financial airbag for the family.

However, Generation Y rose during the consumer boom and economic growth, so it is unusual for them to save. They perceive brands positively and spend money on them: iPhones, trendy sneakers, and other luxury items. It can be said that brands are important to them. Therefore, some people belonging to this generation even spend all the money on clothes which is good for the economy, but not for their future.

And this is why we have brought you a blog that will tell you what you need to learn and what you don’t need to learn from generation X in order to make your future financially stable without compromising on your current desires.

The Millennials generation is the one that includes those born between the early Eighties and the very last Nineties and this generation is characterized by a high propensity to use digital tools.

Each generation has its own approach to money, investments, and savings. This is influenced by many factors at once: historical events, education, motivation, economic crises. By analyzing the purposes for which Gen Y saves, it emerges that they are linked more to a single experience than to long-term planning.

People born between 1981 and 1996 feel a heavier financial burden on their shoulders and focus more on the present than their parents and grandparents.

What to learn from Gen X:

• Don’t crave comfort and luxury but rather go for long-term well being
• Make investments for having a secure future
• Be consistent in contributing some part of the income as investments
• Diversify your investments

Investing habits of Gen X you should not follow:

• Instead of giving more importance to money, first you should obtain financial literacy
• Don’t think of investing once with a big amount but make smaller contributions in available financial products like SIPs
• Rather than being suspicious of technology and innovation, you should make use of it
• Unlike Gen X, you should seek financial independence with financial advisors and retire early
• Instead of putting all your savings in buying a house first, you should start investing from a young age so that you can have a good amount of money left after achieving your goals

Avoid becoming a victim of FOMO

Millennials entered the age of technology at a young age, so the Internet and social networks are an integral part of their lives. Gen Y is also constantly exposed to posts from friends and acquaintances, comments from influencers, and images of celebrities on social media.

The result of all this is a “fear of missing something” (a phenomenon better known by its acronym FOMO). It must be said that this is the first generation whose entire adult life has been marked by the use of social networks such as Facebook, Twitter, and Instagram.

The term FOMO sums up the anxiety that seizes readers of social media posts at the thought of missing out on an important event or a consumer item. FOMO is much more prevalent among millennials than among Gen X or baby boomers.

So, in order to ensure that you fulfill your short-term desires along with being financially stable in the future, it is best to start saving some part of your income and invest it now with RKFS!