The 3 Fintech Skills Every Millennial Needs to Conquer Their Finances

If you’re a millennial wanting to control your finances, you need to learn these three must-have fintech skills. As a generation saddled with student debt, stagnant wages, and a higher cost of living, millennials have faced unique financial challenges compared to previous generations.

However, a new wave of innovative financial technology (fintech) is finally giving young people the tools they need to break free from the paycheck-to-paycheck cycle and build real wealth. From automating savings to harnessing the power of micro-investing, these cutting-edge fintech strategies empower millennials to achieve their money goals faster.

In this in-depth feature, we’ll dive into the three fintech skills every millennial needs to conquer their finances and take control of their financial future. By the end, you’ll have a roadmap to implement these strategies immediately and finally achieve the economic security and freedom you deserve.

Micro-Investing: The Millennial Wealth-Building Secret

While the traditional advice around investing has been to “start early and invest often,” building a sizable investment portfolio can feel daunting and out of reach for many young people. Between student loans, rising rents, and the general financial pressures of early adulthood, setting aside hundreds or thousands of dollars each month to invest may seem like a pipe dream.

This is where micro-investing comes in. Micro-investing, popularized by fintech apps like Acorns and Stash, allows millennials to grow their wealth in small, manageable increments. The basic premise is simple: These apps automatically invest your “spare change” by rounding up your purchases to the nearest dollar and funneling the difference into a diversified investment portfolio.

Micro-investing apps also allow you to schedule recurring, automated contributions as low as $5 per transfer. Thanks to the power of compounding, these small amounts can add up to significant savings and investment growth over time.

Take a hypothetical example of Jessica, a 28-year-old millennial in San Francisco.

Like many of her peers, Jessica struggled to save and invest consistently, often finding that unexpected expenses had whittled away any leftover money at the end of the month.

“I had all these good intentions to start investing for the future, but I could never get myself to follow through,” Jessica admits. “By the time I accounted for rent, student loans, and other bills, there was never much left to put away.”

That changed when Jessica downloaded and connected the Acorns app to her bank account. Every time she purchases, the app automatically rounds up the transaction and funnels the digital “change” into a diversified portfolio of stocks and bonds.

“At first, I didn’t think the micro-investments would amount to much, but I was astonished,” Jessica says. “After 18 months of using Acorns, I’ve managed to grow my balance to over $4,000 – and I haven’t even had to think about it. It’s been such a game-changer for building my long-term wealth.”

The numbers speak for themselves. If Jessica continues investing just her spare change, remember to make a conscious contribution of 74,000 saved by the time she’s 65 years old, assuming a conservative 6% annual rate of return. And that’s without ever having to remember to contribute consciously.

“Micro-investing is the perfect solution for millennials like me who want to invest but struggle with discipline and competing financial priorities,” Jessica adds. “It’s automatic, effortless, and adds real money over time. Every millennial should be taking advantage of these types of fintech apps.”

Budgeting with AI-Powered Apps: The End of the Spreadsheet Struggle

While micro-investing helps millennials build long-term wealth, another crucial fintech skill is mastering budgeting and expense tracking. After all, you can only grow your money if you know where it’s going.

Traditional budgeting methods involving pen-and-paper ledgers or spreadsheets have long been frustrating and confusing for young people. Manually categorizing every transaction, identifying spending trends, and adjusting to hit savings goals takes time and effort.

Fortunately, a new generation of AI-powered budgeting apps is solving these pain points and making it easier for millennials to manage their finances. Tools like Mint, YNAB (You Need a Budget), and Clarity Money leverage sophisticated algorithms to automatically categorize purchases, spot opportunities for savings, and provide personalized recommendations.

“I used to dread doing my monthly budget because it was just a hassle,” says 31-year-old millennial Alex. “I’d spend hours combing through my bank and credit card statements, trying to remember what each transaction was for. By the time I was done, I was too exhausted to act on any insights.”

But since Alex started using the Mint app, budgeting has become a seamless, almost effortless process. “Mint links directly to my financial accounts and automatically categorizes my spending into things like ‘Dining Out,’

‘Groceries,’ ‘Bills,’ etc. It’s fantastic – I can just glance at the dashboard and instantly see where my money is going.”

Even better, Mint’s algorithms analyze Alex’s spending patterns and provide personalized recommendations to help him save more. “The app will point out areas where I’m overspending compared to my historical averages and give me tips on cutting back. It’s like having a personal financial coach in my pocket.”

The impact on Alex’s finances has been dramatic. “Before Mint, I lived paycheck-to-paycheck and never knew where all my money was going. Now, I have a clear picture of my cash flow and can save significantly more each month. I’m even making progress on paying down my student loans faster.”

As more millennials like Alex discover the power of AI-driven budgeting apps, the days of the spreadsheet struggle are quickly ending. These fintech tools make it easier to track spending, identify opportunities for savings, and stay on top of financial goals.

“Budgeting used to be this big, intimidating chore, but the right fintech app can make it almost automatic,” Alex concludes. “Every millennial should be taking advantage of these tools – it’s a game-changer for controlling your finances.”

Automating Savings and Payments: The “Set it and Forget it” Approach

The third essential fintech skill for millennials is mastering the art of financial automation. While budgeting apps and micro-investing provide valuable insights and wealth-building mechanisms, the final piece of the puzzle is using fintech to automate your core money management tasks.

“The biggest challenge I face as a millennial is remembering to do all the things I know I should be doing – saving consistently, paying bills on time, investing for the future,” explains 27-year-old Emma. “Even with the best intentions, it’s easy for these important financial behaviors to slip through the cracks amidst the daily grind.”

This is where fintech automation can be a game-changer. By linking your bank accounts, credit cards, and investment portfolios to a range of intelligent, automated tools, you can effectively “set it and forget it” when it comes to critical money management tasks.

One prime example is automating your savings. Rather than manually transferring money into a dedicated savings account each month and hoping you don’t dip into it, fintech apps like Digit and Qapital can do the work for you. These tools analyze your income, spending, and upcoming bills, then automatically move small, calculated amounts from your checking account into savings on your behalf.

“I used to be terrible about saving – I’d have good months where I’d stash away a few hundred dollars, but then I’d end up tapping into that account for unexpected expenses,” Emma admits. “With Digit, I don’t even have to think about it. The app just quietly moves little bits of money into my savings, and before I know it, I’ve accumulated over $3,000 without even trying.”

Automating bill payments is another powerful fintech strategy. By linking your bank account or credit cards to smart payment apps like Prism or Truebill, you can ensure that every recurring bill – from rent to gym memberships to Netflix – is paid on time without lifting a finger.

“Being able to set up automatic bill pay has been a lifesaver,” says Emma. “I used to constantly worry about late fees and dings to my credit score whenever a due date slipped my mind. Now, I just ensure the money is in my account, and the apps handle the rest. It’s such a weight off my shoulders.”

Picture of Jeff Sekinger

Jeff Sekinger

Founder & CEO, Nurp LLC

Search Posts

Latest Posts

Follow Us