JOHANNESBURG – The ’silly season’ is characterised by spending: spending quality time with loved ones, and spending more money than usual, in the process.
While millennials appear to be more financially savvy than previous generations, they are also facing greater tension between the responsibility to provide for their relatives and investing to reach their own financial goals.
This is according to the 2018 Old Mutual Millennial survey, which revealed that while South Africans between the ages of 18 and 34 years are more likely to save and invest their money than older generations, nine out of ten millennials are financially providing for their relatives.
As such, Elize Botha, Managing Director at Old Mutual Unit Trusts, says that the festive season can be a particular point of conflict for money-savvy millennials. “The holidays, which are often associated with both giving to others and receiving a year-end bonus, can put young professionals in a difficult position.”
However, Botha says that it is possible for millennials to have their proverbial Christmas cake and eat it, by approaching the festive season a little differently this year. “The first step is establishing what is most important in the bigger scheme of things. This requires being honest with both yourself and your family about how much you can afford to spend, and how much you need to invest in order to remain on track with reaching your financial goals.”