6 Popular Financial Apps for Millennial
Millennials have had their fair share of challenges when it comes to managing finances. According to one study from George Washington University, about 70 percent of them believe they have financial literacy, yet only 8 percent actually did have extensive knowledge on the subject.
However, Freedom Debt Relief has seen that many millennials are eager for solutions to help them, especially technology solutions. And today there are plenty of them. Fintech startups have billions of dollars of investor backing and many of them are making personal finances less complex and easier to manage.
Popular Financial Apps
Mobile apps have become increasingly popular amongst millennials. Freedom Debt Relief reports that some of the favorites amongst this generation include:
- Mint – This app helps people track their spending, savings, and bills that are due, all in one location.
- LearnVest – An overall budgeting and financial planning strategy app.
- Stash – An investment app that starts small, with just $5 you can begin.
- Acorns – A microinvesting app that uses your spare change to grow wealth.
- PayPal – An alternative to credit cards to make payments, accept payments, or transfer funds.
- Venmo – An app to accept or send money to family and friends.
These apps, along with mobile banking apps of the big, established banks are helping millennials connect with their money.
Challenges Millennials Face
Despite turning to these popular financial apps, Freedom Debt Relief reports that millennials still face many challenges when it comes to managing their finances. Going back to the study from George Washington University, one of these challenges that millennials face is that many of them believe they know more about finances than they actually do. This overconfidence puts them in a vulnerable financial position because the things that they don’t know might hurt them.
It makes sense that they believe they are financially savvy. Millennials are a highly educated and diverse generation. Yet, they are plagued with high amounts of student loan debt and other forms of long-term debt which can have detrimental consequences. Freedom Debt Relief reports that two-thirds of all millennials have at least one source of long-term debt. And about 30 percent have more than one type of long-term debt.
This debt can make it difficult for millennials, and many are putting off major milestones like getting married, buying homes, or having children. Nearly half of the millennials polled had less than $2,000 in an emergency savings fund and nearly 30 percent had overdrawn their bank account in the last year.
Hope for the Future
Despite these bleak statistics, the future is not all bad for millennials. Freedom Debt Relief reports that over 50 percent of this generation do have retirement accounts and over 40 percent of them own their own homes. While only 6 percent reported being fully satisfied with their financial situation, millennials tend to have a positive outlook for their futures. And with the help of their favorite financial apps, this generation is learning to take control of their finances and get back on track.