The financial crisis of 2008 hit a lot of people, but the damage inflicted on millennials was dealt out on several levels. Not only were savings attacked, but they had to enter into a depressed job market while saddled with university/college debt. The repercussions of this are still being felt, as this generation is less likely to own real estate or automobiles than generation X or baby boomers.
That’s not for lack of want: 80% of millennials want to own property and cars, but can’t afford to buy in the current market.
The question then becomes: what do you do if you are a millennial wanting to get a solid grasp of your savings plan? (Or for that matter, what do you do if you aren’t a millennial but still need to get your financial ducks in a row?) It shouldn’t be a shocking fact that FinTech is ready to help. Innovative startups are waiting in the wings, raring to help people balance their pocketbooks and master how to budget.
Take Exeq, a great option for those who feel they need a little help managing the budgeting process. This app tracks where you spend your money and lets you see this info in a way that makes it easy to see where you are overspending and how you can cut back. As well, users can interact with friends within the app and (soon) will be able to get better recommendations and better deals based on your spending habits. Currently in beta testing, the app is set to officially launch in New York City (the hotspot of overspending) at the end of summer and then will expand to other major cities. This is great news for anyone still struggling to understand where their money goes (and could benefit from a budget).
Another great option is Goodbudget. This app is a modern update on the envelope budgeting system, giving people an easy and clear way to divide their income into saving and spending categories and then ensure they don’t overspend in certain areas. Plus, as budgeting is often a team effort, the Goodbudget software lets users easily share their budgets with the proper parties, making sure everyone involved is on the same page.
Spending money without a budget is a surefire way to find yourself suddenly strapped for cash and unable to pay vital bills. That being said, the old-school method of budgeting (via paper or spreadsheets) can seem time-consuming and cumbersome and easily turns off busy millennials devoted to technology. By making it easy and accessible, FinTech will bring budgeting to the masses and help stave off another financial disaster. Give it just a bit of time and we might just find ourselves in the most financially aware society the world has ever known. Imagine the potential that will bring.