The Surprisingly Simple Financial Mindset of Millennials

Rich & Famous April 11, 2023

Millennials have sort of gotten a bad rap with some people calling the generation entitled and even lazy because of how they act in the workplace or on social media. However, the negative stereotype is further disproved by the findings of a study done by researchers from the University of Arizona.

More Satisfied

Aside from the obvious benefits associated with ‘proactive financial strategies’, these also help millennials become happier.

According to their findings, millennials who implemented proactive financial strategies proved to be more satisfied and happier about their lives. The team arrived at this conclusion by following 968 young adults (born between the years 1981 to 1996) during their college years and post-college life.

The researchers got in touch with the participants three times first during their freshman year, next while they were in their senior year, and then one last time two years after.

They were asked to answer questions about their views on materialism as well as their own personal finance tactics from budgeting to pro-environmental spending habits. Habits relating to the environment were reportedly of interest to the team as they were curious about how students would The participants were also surveyed about their mental health letting them assess their own well-being and overall satisfaction with their lives.

Less Psychological Stress

Participants who employed money-saving techniques also ended up being more financially satisfied

Meanwhile, the associate professor and study author Sabrina Helm also found an association in the participants’ money-saving ways and them experiencing less psychological stress. Those who said that they bought and consumed less also showed fewer signs of depression.

Helm attributes these positive effects to the peace of mind that people get from being able to set aside for times of need. Living within one’s means, she says, can also lead to the same results. In the end, Helm says that these findings can be significant particularly to students, who might be facing financial struggles,

A Sustainability-Inclined Mindset

Make a habit of writing down a shopping list before going out to shop at the supermarket or the mall to prevent making impulse purchases

Furthermore, certain sustainability efforts have also resulted in positive impacts on individuals’ happiness and health. The researchers distinguished two kinds of consuming though: simply buying ‘green’ products and consuming less to help the environment.

And those who did the latter were reportedly happier than the former. Helm explains how following this buying less philosophy might also be better for people’s mental health than using products as solutions to problems they may have as they’ve been socialized to believe.

She also suggested some concrete ways people can feel happier while stepping back from a consumerist mindset. One thing she recommends is keeping a diary to write down one’s weekly purchases in. Doing so would help in keeping track of spending habits and becoming more mindful of one’s general consumption behaviors.