- Rich millennials have different financial habits from 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 like Tesla, Amazon, Apple and Netflix.
Sean Andrew Sanders
Wealthy millennials are defined as those earning more than R100 000 per month or who have more than R16 million in net assets. They behave in noticeably different ways to their less affluent counterparts, who seem to be in a constant battle trying to keep their head above water. What’s more, they’ve developed financial habits that distinguish them from Generation X and Baby Boomers, those born between 1946 and 1985.
Investing has become case and 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 CEO and co-founder of the index-tracking crypto-investing platform, Revix, to delve into how the financial behaviour of wealthy South African millennials sets them apart from the rest of their generation.
1. Wealthier South African 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. However,…