What’s the best investment for millennial earners?
Investment and finances are boring topics to most of us, especially to the millennials who have luxurious spending habits.
Survey from the American Institute of Certified Public Accountants revealed that over three quarters of millennials spend their money on clothes, cars and technological gadgets, and half of them use credit card to pay their basic daily needs such as food and utilities.
In the Philippine setting, a study from Standard and Poor’s revealed that millennials spend for experience such as traveling, food trips, immersing into cultures and buying clothes and gadgets.
The said study also found out that millennials has a low financial literacy level as compared to other older generations, leading for the Philippines to land on 117th spot out of 125 countries in terms of financial literacy level.
Given these results, there is indeed a need for the millennials to become more educated on how to invest their hard-earned money.
“Insurance is not only for the old people or for the professionals. It is an opportunity for everyone,” said Sun Life regional sales manager Val Lagarde.
She advised that millennials should do away the mentality of sacrificing something they want in order to save money or start an investment as one can still save and invest while enjoying the things they want by choosing the right financial tool.
Bank savings and insurance policy are two of the easiest and popular ways to save. According to Sun Life regional sales manager Mike Gustilo, both are good financial tools, yet, at the end of the day, it still boils down on the purpose of your savings.
“We are presented with a lot of options. We think that we are invincible because we have time. We have the capacity and the luxury to make mistakes. But then again, to focus on the bank and insurance money are both good, but at the end of the day, you have to ask yourself: what’s the purpose of it?”, he noted.
According to a recent study about the spending habits of Filipinos, 84% of Filipino millennials don’t have adequate emergency savings, but significantly, 55% of them have life insurances.
Gustilo advised that bank savings is the best instrument for saving for daily needs and emergency purposes, as it can be withdrawn anytime.
On the other hand, though insurance can still be used for emergency purposes, putting one’s money in this financial instrument entails long-term appreciation but with better potential for higher returns compared to bank deposits.
At this time when economic crisis is being felt by everyone, it is really important that we prepare for the future by investing at the right financial tool. There are now a lot of options available in the market. It’s just a matter of choosing the best option that matches our need and risk appetite.
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