If you were born between 1981 and 1996, you’re a millennial. Aside from the cliché about millennials spending their house savings on overpriced avocado toast, what does this mean for you financially?
This article from The College Investor details the spending habits and traits of millennials.
“Millennials have a tendency to spend money on experiences rather than material possessions. Also, millennials are willing to forego some of the basic luxuries in order to stretch their dollar for spending on experiences by using rideshare services such as Uber.
“They embrace the work from where ever, whenever mentality, and are great at using the online economy to their benefit.”
Financial protection for millennials
For previous generations, the first-home purchase was the cue to take up comprehensive insurance, but millennials are often more focused on lifestyle and travelling than owning a home. So what insurance covers are relevant to those aged between 22 and 37?
Whether or not you’re a homeowner, it’s essential to start thinking about a long-term financial plan, including financial protection through insurance products like income protection and health insurance.
Income Protection
Income protection covers most of your lost income if you’re unable to work due to an illness or injury. A level premium structure is an excellent, affordable option if you want to keep your policy long-term.
Health Insurance
With the ever-increasing pressure on the public health system, and ACC looking for any opportunity to get out of paying a claim, health insurance has become more of need than a want. Health insurance provides you with the freedom to choose when and where to have treatment.
Other insurance and financial products worth considering are:
Renters insurance
This covers your personal property if it’s stolen as well as the costs to repair any accidental damage to the property you’re renting.
KiwiSaver
While this is traditionally a retirement fund, it’s also an excellent vehicle to help you save for your first home. You can give your future self a big leg-up by getting this up and running correctly as soon as possible.
While we’re home loan and insurance experts, our blog posts are for general information purposes only and are not intended as financial advice. If at any stage you need personalised advice, get in touch on 0800 346 765, or email finsol@finsol.co.nz.
