Millennials are the largest generation in today’s workforce, but many struggle to save money for the goals and experiences that are meaningful to them.
Unlike previous generations who were motivated to save up for “retirement” and build long term wealth, the Millennials want to enjoy life right now. However, most financial institutions aren’t prepared to serve this new type of customer and their changing needs.
In fact, more than one-third of all Millennials choose non-traditional career paths, which can include multiple jobs, contract work, or “side hustles.” This means they typically have a less-than-stable income stream and no easy access to the types of traditional “savings plans” their parents benefited from. To make things more challenging, they’re also forced to contend with a high cost of living, staggering student-loan debt, and an annual salary that’s an estimated 20% less than their parents earned at their same age. But that doesn’t mean Millennials aren’t motivated to save their money — they’re simply driven by different goals. That’s why this massive generational cohort needs a solution that can help them get the short-term gratification they want, all while developing the valuable habit of setting — and achieving — meaningful monetary targets.
The secret to solving this puzzle?
According to the founders of Guac, the answer could be as simple as getting Millennials to “save as they spend”. You see, unlike other FinTech companies that have “round up” savings features (which aren’t controllable by the user)…. Guac uses a percentage-based “save while you spend” technology to help users set meaningful financial goals, track and measure their progress, and save money on purchases through an in-app marketplace.
