How Do Millennials Manage Their Money?

Millennials are often characterized as the first generation to have grown up with the internet. Born between 1981 and 1996, this group of individuals is accustomed to technology, which significantly reflects how they manage their finances. In this post, we’ll explore how millennials handle their money and how it may differ from other generational groups.

Online Banking

For many millennials, a bank isn’t a place you actually go. It’s on their phones. In 2023, approximately 74% of millennials used digital banking–mobile or online–most often, with 60% saying they used a mobile device to manage their account the most; whereas 70% of baby boomers used digital banking most often, but just 31% said they used a mobile device the most.

This is not just out of convenience but also because of availability. Twenty years ago, the banking industry was limited to mostly major institutions with brick-and-mortar locations. Now there are numerous digital and online alternatives offering many of the traditional banking services:

• Checking and savings accounts
• Credit cards
• Loans and refinancing
• Investment accounts

Millennials have embraced this evolution of the bank more than older generations and can find everything they need right at their fingertips.

Digital Budgeting

You won’t see very many millennials pouring through their bank statements or keeping a detailed spreadsheet when managing their spending habits. Thanks to faster connectivity and networking between financial institutions, there are dozens of budgeting apps that offer users the ability to automatically keep track of every transaction that’s made.

This helps millennials manage their budgets by giving them a real-time report of how much they spent. Some of these apps even let the users pre-program limits on certain categories, like food and entertainment. When the user gets close to this threshold, the app will let them know, and they can adjust accordingly.

Investment Apps

Over the past decade, there has been a massive increase in the popularity of trading apps. For those addressing their long-term financial needs, many seek the help of investment apps that also serve as a robo advisor. A Robo adviser is a computer algorithm that makes investment recommendations based on the user’s profile. There is no human financial expert behind the scenes. The app simply gauges the user’s tolerance for risk and desired financial goals and recommends a portfolio of low-cost ETFs (exchange-traded funds).

Long-Term Debt

Millennials have been saddled with a lot of student loan debt. Most of these individuals who pursued higher education had to borrow the funds they needed as rising tuition costs far outpaced the rate of inflation by more than 100% per year in the 21st century, according to 2024 estimates.

Student loan debt has caused many millennials to think differently than other generations about their overall long-term debt. For instance, many of them are not as quick to buy a house and settle into a 30-year mortgage. Additionally, they may be more accepting of tools like debt consolidation loans to help eliminate unsecured debt like credit cards to have more manageable payments.

The Bottom Line

Between online banking, digital budgeting, and investment apps, technology has changed how millennials manage their money. Even though this group carries a large burden of student loan debt and may have to rethink some long-term financial goals, they still take their financial future very seriously.

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of [fangwallet.com] or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.

Reviewed and edited by Albert Fang.

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Article Title: How Do Millennials Manage Their Money?

https://fangwallet.com/2025/05/08/how-do-millennials-manage-their-money/

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