MILLENNIALS aren’t just sitting around eating avocados and bingeing on Netflix but are actually investing more wisely than older generations, ArchOver claims.
The peer-to-peer business lender analysed investment behaviour millennials – typically those age 18-35 – and compared this with the attitude of their parents or Generation X.
The research found millennials are actually investing far more per month than their parents and grandparents, with 21 per cent putting away between £500-£999 a month, compared with 13 per cent of the older generation.
“Millennials are active, they’re online and they’re more affluent than we thought,” Angus Dent, chief executive of ArchOver, said.
“They’ve grown up with low interest and high inflation, so they understand naturally that long-term investments like ISAs won’t give any kind of meaningful return these days.
“Instead, they’re showing that if you want a decent return you have to diversify your portfolio to include shorter-term, higher-yield options like P2P finance and auto-investing apps.”
Dent said Generation X could learn a lot from the way millennials use digital platforms to earn returns on their money.
“Using digital investments helps you get optimum control over your cash and insight on the companies you’re investing in before you commit,” he said.
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“But you don’t have to throw the baby out with the bathwater – a good balance of newer, more flexible options with traditional vehicles like stocks and shares means you can get security as well as worthwhile ROI. You just have to be wise about how much you put in the ‘risky’ pot.
“A healthy dose of digital and short-term investments can make a world of difference to the average portfolio – and as long as the interest rate continues to graze along the bottom of the graph, you’re going to have to find alternative ways to grow your nest egg.”