Sample donated: Adrienne Gibbs
Last updated: September 27, 2019
Everygeneration affects the economy, but millennials, also known as Generation Y, they are considered to be thoseindividuals who entered adulthood around the turn of the 21st century. Theyhave developed in a time of rapid economic change, which gave them highercareer expectations than the previous generations.
In fact, millennials arepoised to reshape the economy. However, this kind of generation have beenfrequently labeled as narcissistic, lazy delusional, materialistic, spoiled andsaddled with a sense of entitlement but they already entered the workforce at atime of economic instability and are approaching captious points of theirfinancial decision making. In theglobal context, Calfas (2017) stated that having financial problems usuallyoccur in the workplace however when it comes to the millennials there is muchto say.
A recent study shows that millennials are absolutely different thantheir older colleagues when it comes to spending hours at work concerning abouttheir financial stress. The study shows that 67% of the millennials states thattheir ability to focus and be productive at work has been overcome by theirfinancial stress, according to a report from the Bank of America Merrill LynchWorkplace Benefits. The youngsters, spends an approximately four hoursevery week at work focusing about their finances.68% of the millennials saysthat financial stress had a bad effect on their health. This means that theimpact of stress doesn’t on their performance at work.
“Stress can wreak havocon productivity and an employee’s health,” Lisa Magerson, head of theRetirement Client Experience & Communications at Bank of America Merrill,told MONEY.Because of the tough economy with a slow wage-growth rate andincreasingly high cost living, millennials now, have the reason to be stressed.According to a 2016 report from the New York City comptroller’s office,compared to the previous generation the millennials today earns about 20% lessthan of what the previous generation earned that did actually the same.Magersonsaid, “Millennials are most likely to feel burden of juggling near-term priorities(i.e., student debt, budgeting), while saving for long-term goals for the firsttime.
“According to the Bank of America there is 56% of all the workers who arestressed about their financial status and 53% of those who are stressed saythat it interferes with their careers. It states that not only the millennialsare the ones who are worrying about their finances but also the other the othergenerations too.According to the Bank of America they found people who arehoping that their employers can help with their financial problems; theseproblems can be solved by getting a financial education course or by gettingsome professionals to teach the employees on how to manage their debt paymentsor other money handling strategies.”Having access to educational content thatis personalized and relevant, along with access to professionals that can helptheir employees navigate their financial lives, creates a culture for wellness,not dissimilar from what many companies do now around their healthcare benefits,”Margeson said. In the national setting, Castañeda(2016) stated that in the Philippines, the current mean age of millennials is24. The American sociologist Kathleen Shaputis termed that the millennials area “Peter Pan” generation because they are owing to perceived the tendency ofdelaying “adult” rites, such as purchasing their own homes, marriage, and soon. This may be result to global financial crisis.
There are several factorswhy millennials called as the Peter Pan generation. First, they are losingopportunities towards investment gain, it was said that the country Philippinesis in a demographic sweet spot and millennials who start investing money at ayounger age they will have more time to diversify their portfolios and takemore chance because they are optimistic about being able to dispose theirearnings for their long-term goals but they have lack of knowledge inorganizing their finances. Acons, an investing mobile application reported thatin 2015, 85% of the global respondents either have a lack of knowledge to startinvesting or afraid to face the same losses that their parents experienced.
Second, they are acquiring experiences than wealth, many millennials have otherdebts that come from giving in to their guilty pleasures of spending. Theyalways encounter issues when it comes to saving and budgeting their money toobtain experiences. Nielsen Global Survey ofE-Commerce (2015) declared that 55% of the young adults would rather disbursetheir money on experiences than their own necessities. Lastly, choosingpassion over job tenure, Delloitte (2016) survey says that 40% of Filipinorespondents that in their early 20’s they anticipate to leave their currentplace of employ. Policy Center at FEU conducteda survey that 67% of their respondents have alternative means to supportthemselves financially but Delloitte global study posited, they declared that70% of people within the millennial age would rather work independently and 90%have successfully put up their own projects and are thriving. Locally, Perez (2017) stated that thekey to achieve a million-future goal is using your financial wisely.
The SunLife Grepa Financial Inc. have presented a “Millennial Now, Millionaire later”program to help the young Filipinos or the millennials to be prepared to reacha well-to-do million-peso future goal without ruining their goals or prioritiesat present. There are three diverse tracks that the program offered to thosemillennials who are just starting to build up their career such as NormalTrack, Fast Track, and the Safe Track. These are the ways to help them to earnfunds starting from at least 100 pesos per day depending on how much they wantto give and how fast they want to earn money to reach their million-peso goal.
Sun Life Grepa also proclaim that the program track offers life insuranceassistances and begins from the time they started the program, this program isfor the millennials to be ready for life’s worries that may happen to them.Millennials are into You Only Live Once or YOLO attitude, this program serve astheir chance to balance their viewpoint by building a better and bright futureand also it was announced that the Millennials have a greater time, have muchyears to save their cash and has a great privilege to make the most of theirearning potential. This is the right time to start saving their money for themillion-peso goal. They also added that millennials should not concern aboutwhat they are going to do with their future, if they could truly understandtheplanned schedule on attaining those targets.
If they recognize the age theywant to accomplish their goals and how much should they earn for that goal,success would be attained for their future. With the help of the program themindset of the millennials would change from YOLO to YOLI (Young Owner of LifeInsurance). According to the Sales Officer and financial adviser millennialshave a habit of being precipitate in buying and spending their money fromunnecessary things. Also, it was stated that millennials must be realistic interms of their goals and know how to lend their ears to what other individualsexperienced. In summary astrong case can be made by studying financial management. For it is a majorfactor for the millennials to improve their financial literacy. Thus, theresearchers are indeed confident that with this study, it will lead themillennials to have a concrete solution to the problems they are facing today.Asfor the millennials who have conflict in managing their money, it is veryimportant for them to know more about in handling their finances well for theyare the one who will gain the negative and positive effects of it.