Oct 23, 2017

Even though you often see Millennials posting pictures of expensive purchases on social media, they tend to buy things without the use of credit cards. Studies show that Millennials don’t particularly care for debt.

On Monday, Facebook IQ, a department of the social network that analyzes user data (specifically observing marketing decisions), released a study regarding the financial management of American Facebook users between the ages of 21 and 34.

As it turns out, Millennials are quite mindful of paying their debts on time, diligent about credit card use, and conscientious about saving their money. Millennials have learned from the history previous generations had with debt. According to the study, 46% of Millennials on Facebook equate financial success with being debt-free.

However, in spite of an active discussion of money management between young people on Facebook, a mere 37% have a financial management plan in place, according to the study. Individuals in this age category are more inclined to conserve their income - 86% put away a portion of their paychecks every month, but aren’t so inclined to make investments with their money, unlike their parents.

The education Millennials received during the Great Recession may have influenced their scepticism of traditional institutions and banks. On the contrary, Millennials are 2.5 times more likely than their parents to obtain financial advice from a computer program, as they charge lower fees, robotize investment decisions, and require lower minimums.

To no surprise, you can expect any expensive purchase made by a Millennial to be posted on Instagram or Facebook, accompanied by the hashtags #newhouse or #newcar

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