Rich millennials have different financial habits to the rest of their generation. Having come of age during the 2009 Great Recession, many millennials are wary of investing — but affluent millennials tend to embrace it, investing in global markets and alternative investment opportunities such as cryptocurrencies.
Compared to their peers, rich millennials sit on significantly less cash and they have a different viewpoint of debt.
The more affluent millennials invest for growth, which means that they overweight their investment portfolios with cryptocurrencies and big tech names such as Tesla, Amazon, Apple and Netflix.
Wealthy millennials — those earning more than R100 000 per month or who have more than R16-million in net assets — behave in noticeably different ways to their less-affluent counterparts, who seem to be in a constant battle to keep their heads above water. What’s more, the millennials (1981-1996) have developed financial habits that distinguish them from Baby Boomers (1946-1965) and Generation X (1966 to 1981).
Investing has become a case in point. Being risk-averse is a hallmark of the generation that came of age during the Financial Crisis of 2009 — yet affluent millennials are investing in growth-focused assets more than ever before. Specifically, they embrace global investment opportunities that are generally outside of traditional go-to investments.
We sat down with Sean Sanders, the chief executive and co-founder of index-tracking crypto-investing platform Revix to take a deeper dive into how the financial behaviour of wealthy South African millennials sets them apart from the rest of their generation.
1. Wealthier millennials understand the difference between saving and investing
It makes sense that the wealthy, regardless of age, are more open to investing instead of saving — investing equates to wealth growth, whereas saving is simply wealth preservation — but this trait has become particularly prominent among…