The financial habits of the Modern Family
Let’s face it – the 50s were a long time ago, a lot has changed and happened since then. Nowadays, men and women work side by side, and the picture of the modern family (not the one of Sofia Vergara and Ed O’Neill) is much different than the one of the past.
The millennials (1981-1996), the generation that welcomed technology and transformed the way we live, have carved their way into this world and changed some of the golden standards set by the generation of the baby-boomers (1946-1964).
Let’s take a look at the modern way of family financing.
1. Utilities, rent, mortgage…
If you’re thinking of joint accounts, you are on the right path. However, this hasn’t always been the case. Keep in mind that we are not talking about a joint savings account, but about a joint utility bill account. The account in which each contributes to equally, in order to cover monthly expenses such as utility bills, mortgages, rent, car lease (if it’s the family car), and others. Purchases of any other kind are most likely bought and paid for separately.
2. Privacy issues
It’s 2020, and even though millennials showcase a big part of their lives on social media, they are also the ones that are constantly concerned about their privacy. This time we are not referring to cybersecurity, but the personal privacy one wants to have when it comes to his or her earnings. The difference in how much one makes yearly can strain some relationships and create room for unwanted stress. This is why more and more young families prefer to keep separate bank accounts and pay equally only for their common expenses, even though they live together.
3. Lust for freedom
Financial independence is something most of us strive for, ever since we get our first job. This financial independence is hard to reach and extremely hard to keep. The generation of the millennials knows that and surely works super hard to achieve it. The modern family keeps clear boundaries about what belongs to the joint account and what to the personal savings account.
4. Rely on yourself
The generation of the baby-boomers may be the one to entirely rely on the government to take care of them when they retire. Millennials, however, plan to do no such thing. Young people have an entirely different mindset when it comes to how they will live their lives. This new mindset includes a brand-new retirement plan as well. This generation will most likely rely on themselves. Most young people that have a steady job or excel in their careers are holding on to a solid savings account and even plan on expanding with different investments. If you think that millennials spend more than their preceding generations, well…you will be right. But this generation also has the opportunity to take full advantage of the internet and earn income from more than one source.
A lot has changed in the past 50-60 years and in the habits of the family created by the generation of the baby boomers. The millennials “set the table” for a different way of communicating, working, earning, spending, etc. One can only wonder how Generation Z (1997- present) will contribute to the life of the “modern family."