There is a paradigm shift that is quietly but strongly transforming the future for Millenials. I am a Millennial myself, and the earlier we find out these trends, the better we can prepare and make better decisions in the days ahead.
An article by The Atlantic states that Millenials are the cheapest, least car-and-house-owning generation.
Since the end of World War II, new cars and suburban houses have powered the world’s largest economy and propelled our most impressive recoveries. Millennials may have lost interest in both.
Notable factors such as the Great Recession in America are redefining the landscape and help form the shape of our mentality. Here are some:
1.) Less Preference on Owning Cars- Owning a car worth P 1.5 Million and letting it sit in your garage 23 hours a day could be a thing of the past for Millenials.
…today’s young people simply don’t drive like their predecessors did. In 2010, adults between the ages of 21 and 34 bought just 27 percent of all new vehicles sold in America, down from the peak of 38 percent in 1985. Miles driven are down, too. Even the proportion of teenagers with a license fell, by 28 percent, between 1998 and 2008..
Beside the high price tags of cars, its high maintenance cost seem daunting to most millennials. Many may prefer efficient public transportation or private-sponsored buses.
In Singapore and Hongkong, the public enjoys efficient train system and the big savings it gives them. Instead of spending our income in maintaining their private-owned vehicles, income could go to emergency savings and income-generating investments, which results to avoidance of debt and extra income.
Less ownership means less responsibility and less mind-consumption. The drive to own a car could be found out as something impractical, if not now, maybe sooner.
2.) Digitization– the virtual world is the home of Millenials. Majority of our life will revolve around the internet, smart phones and computers. More internet penetration means more digitization. This will result to a new world order and a new system.
Physical, material and atom-made things will be least useful to digitally-connected people. Less people will travel to work, more will buy groceries through their smart phone and more activities will be done through the wireless mobile technologies.
…mobile technology has empowered more than just car-sharing. It has empowered friendships that can be maintained from a distance. The upshot could be a continuing shift from automobiles to mobile technology, and a big reduction in spending.
This means that Millenials will spend more of their income in mobile devices or high-performing computers. The better the performance, the better the service and efficiency it will give them.
Since less covetousness or wants are placed in the physical things that takes more time to gain, the verse in 1 Timothy 6: 8 could be true: “And having food and raiment let us be therewith content.”
3.) More spending in Education
Education is the “obvious outlet for the money Millennials can spend,” Perry Wong, the director of research at the Milken Institute, told us, noting that if young people invest less in physical things like houses, they’ll have more to invest in themselves. “In the past, housing was the main vehicle for investment, but education is also a vehicle.” In an ideas economy, up-to-date knowledge could be a more nimble and valuable asset than a house.
More and more Millenials should see the value of continuous and higher education. As we spend less and less in owning, we will obviously spend our money developing ourselves.
Bandwidth will get a lot more cheaper- this is a very obvious future. More supply means lesser price. This also results to Education that is getting a lot cheaper. The Millenials are the people that have this unprecedented privilege.
4.) More mobility
Lower ticket prices and high plane competitions are the games of today. Spending will be directed to travel, vacations and tourist attractions that would minister to the “digital-detoxification” and “digital Sabbath” of Millenials.
The upside of this is that the generations to come will experience a more mobile, inter-cultural and diverse world.
Since less Millenials prefer home-ownership, more mobile people prefer renting. Freelance jobs and startups sprung up, creating ecosystems of incubation, experimentation and scaling. This results to an idea-open world, where the competition is mostly driven by creative and psychological forces.
Yet, English or Chinese, which one comes faster, will be a primary language spoken by many people, resulting to many divisions broken down, and new trends forming up. This will bridge nations, resulting to multi-racial communities.
This also results to a paradigm shift in approaching missions and evangelism. In the past, people send a family and support them throughout their lifetime, but Millenials experience globalization of workforce which trailblaze a new trend.
This means that rental properties for spaces that will serve as worship halls or spaces will increase. But this does not mean that the cities will get more crowded.
I believe that because of digitization, Millenials will discover the laid-back and affordable lifestyle in provinces without sacrificing their earning potentials in their connected world.
These trends may not be that visible now, but I assess that these are very likely to happen.
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I am also a licensed financial advisor, Bacolod City blogger and digital marketing professional.