AKA the NOW generation, they are characterized by a more self-absorbed attitude, and born since 1980, the Millennials are the demo most criticized for their spending habits.  Still living with mom and dad… frugal or family fail?

Some studies have even gone as far as to say they are holding back the surge of the economic recovery with avoiding big purchases like houses and cars.  While other surveys mark Millennials as a generation of “super savers” burdened by a “Depression-era mentality.”

One thing is for certain: Millennials are and continue to be molded by the financial crisis. The Transamerica Center for Retirement Studies reports that Millennials start saving for retirement (mostly through 401(k) plans) at a much earlier age, 22, compared with older workers. Like their older Gen-X siblings, but unlike their boomer parents, two-thirds of Millennials expect to self-fund retirement, not believing Social Security will be available for them.

As a generation  “permanently scarred by the 2008 financial crisis,” they are left  insecure about job prospects and uncertain about future earnings potential. As a result, Millennials take an “extremely conservative” approach to finances, holding 59 percent of their assets in cash and fixed income instruments rather than investing in stocks — just like their Depression-era grandparents. Funny how sometimes history repeats itself.

But does holding nearly 60 percent of your money in cash make economic sense for a young person? Most would say no. But Millennials are very gun shy at Wall Street for sure. Their generation’s financial conservatism, citing student debt, a tough job market, a decade of war, the real estate bubble and market meltdown are all good reasons to be gun shy. It seems for many of their generation, finding meaningful work and sharing experiences are higher priorities than building a stock portfolio or buying a house.

Which brings us to our next point that Millennials make great flippers.  Although most would describe themselves as  “insecure,” this hasn’t held them back. Overcoming their  “negative stereotype” we are seeing a lot of them not only avoiding the stock market,  but also preferring local real estate. They are investing in their community.

It seems Millennials truly march to the beat of their own drum, with a side of humor and enthusiasm. And while they may not be investing in housing, cars or the stock market to the extent economists and brokerage houses would like, many are investing themselves in molding the world they will inhabit. Here’s to our future generations.

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