Millennials are the largest generation in the U.S. labor force and are increasingly taking on full-time jobs, starting companies and managing their own finances. As a result, many of their budgeting trends are influencing the way younger generations handle their money — both now and in the future.
Below, we explore four budgeting trends expected to shape the way Millennials manage their money in 2022, and take a look how they can use these trends to position themselves for financial success.
1. Automation and AI-driven Apps
For Millennials, automation is key when it comes to budgeting. Automation encompasses not just the set-and-forget aspect of budgeting, but many AI-driven apps around the world are now providing more sophisticated methods of budgeting. AI-driven budgeting apps can use a variety of metrics to create a budget tailored specifically for each user, including income and spending levels. This helps to ensure that Millennials are budgeting in a way that best suits their particular financial situation.
2. Increased Monitoring of Finances
As Millennials become increasingly comfortable with their finances, they are also turning to technology to help them stay on top of their budgeting. One trend is the use of financial monitoring tools, like those offered by Mint, Acorns, and Betterment. These tools not only track spending habits and provide tailored recommendations, but they can also be used to set budgets, track progress, and keep users accountable.
3. Money Management Apps
Money management apps are also becoming more popular among Millennials, as they help to simplify budgeting. Apps like Pocketguard, Banktivity, and You Need A Budget offer users the ability to track their budget and spending, analyze their financial health, and manage their money in one central location. In addition, many of these apps also offer features like bill reminders and budget alerts, making them invaluable to Millennials who are trying to stay on track with their budgeting.
4. Financial Education
Financial education is another trend that is taking off among Millennials. Millennials are eager to learn more about budgeting and money management, and financial education apps like Stash, Investopedia, and Grow offer an easy way to get started. These apps provide an interactive experience, combining game-like elements with education to help Millennials learn the basics of budgeting and investing in an engaging manner.
Millennials are positioning themselves for a successful financial future by embracing these trends and taking control of their budgeting strategies. By utilizing the automation, monitoring tools, money management apps, and financial education options available today, Millennials can better prepare themselves for financial success in 2022 and beyond.
