Millennials are considered one of the most tech-savvy generations, as many members of the group came of age in the 21st century.

Being tech-savvy has given them an edge in several financial markets because the digital network has improved access to investment marketplaces in today’s world. This digital exposure has also ricocheted to increasing their access to remote working, freelance, and other job markets.

So much so that by 2025, 75% of the global workforce is projected to be made up of potential millennial investors.

There is much disparity in how this generation operates, especially compared to older ones like the baby boomers and Gen X. Let’s explore these differences and possible lessons we can learn from them.

How Millennials Compare in Terms of Investments

Millennials are those born between 1981 and 1996. They are sometimes called Generation Y due to their inquisitive nature of questioning the norm from time to time. The generations before them are the baby boomers (1946-1964) and the Gen X (1965-1980).

Factors like time of birth and economic situations have influenced people’s perspectives on things like saving, investment, and finance management in more ways than we can imagine. This is evident in the financial characteristics of these age groups.

Boomers, for instance, tend to be extra budget conscious, are typically conservative, and are generally confident about managing their money, as revealed by the 2022 Investopedia Financial Literacy Survey.

They are resourceful and also highly independent. Despite being outnumbered by millennials, they still hold more than 50% of the wealth in the United States. They invest the majority of their money in stocks, commodities, and exchange-traded funds.

Gen Xers are also more likely to take an interest in the stock market, but mainly because they saw the stock and hedge funds market boom in the 1990s. This age group differs from boomers in their debt habits and financial management approaches.

These two groups have a higher risk appetite, the flexibility to explore options outside of stocks and commodities, and a better understanding of modern investment opportunities than Millennial Investors.

A survey carried out by Bankrate shows that nearly half of these individuals are comfortable investing in crypto assets, as opposed to the 37% of Gen X and 22% of boomers. The reality is quite similar in the forex market, as about 43% are foreign exchange traders.

Factors Influencing Millennials’ Investment Habits

One of the major factors influencing the financial investment decisions made by this age group is technology. Nearly 100% of millennials say they use the internet, and it is no surprise. Millennials have been groomed by tech, and it has shaped their interactions.

The online investment market has made it easier for them to explore different vehicles comfortably on their mobile and desktop devices. The retail trading market is so much more flexible today, with platforms like  OANDA, TradingView, and MetaTrader making it easy to get into investment markets.

The current dwindling economic positioning exerts a major influence on investing habits. According to the Federal Reserve data, boomers had the best economy and held the top spot of the wealthiest generation in the United States; their net worth is about $78.55 trillion.

They had advantages like strong economic growth, an affordable housing market, and booming equity markets. Today’s reality is quite different and more challenging. Interest rates are at a record high, and housing, feeding, and other amenities are more expensive than ever before.

Millennial investors, being faced with such an economy, have had to work twice as hard, looking to other possible earnings like crypto investment, forex, and other asset classes.

Investment Insights for Other Generations

As a generation, millennials have been able to strike a good balance between earnings and flexible investment. They are early adopters of cryptocurrencies, NFTs, and other alternative investments, reflecting their comfort with digital and innovative assets.

Known to be reluctant to try new opportunities, boomers could learn to be more flexible, open to new ideas like digital asset investments, engage in online communities, and be part of financial market advancements.

However, boomers prioritize savings, emergency funds, and frugality, three things that millennials should embrace more, especially since they typically own more debt.

Millennial Investors: Balancing Innovation with Generational Money Management Insights

Every generation has been configured to approach money management differently. The key is to find a balance, take insights from other generations, and find solutions to your weaknesses.

That is, combining the long-term planning and risk-averse tendencies of older generations with the tech-savvy, innovative, and value-driven strategies of younger investors. When combined, you might just be able to take your financial position to the next level.