Fast changing lifestyles, technological advancements and economic growth have shaped millennials’ views and traits which has also impacted their outlook on financial planning.

One such trait is the need to indulge in the moment which motivates them to work hard and party even harder ensuring that they live their life to the fullest. Millennials are also very conscious about their appearance and this coupled with their urge to be the best version of themselves motivates them to invest money and time in continuous self-improvement.

In this day and age, due to the gamut of avenues to spend and their need for instant gratification millennials often end up doing the opposite of a famous saying – ‘Do not save what is left after spending; instead, spend what is left after saving’.

In this article, let’s try and understand why people save and the attitude of millennials towards savings.

Financial planning

First, let us understand, why do people save money?

The answer to this question varies from person to person. However, the intrinsic motivation for most people to save is to progress in life and enjoy greater security. Other important reasons why people save are:

  • For the future of their children – Savings for their children’s higher education and marriage
  • To upgrade or maintain their lifestyle – Buy a house, buy a car, travel abroad or to purchase expensive gadgets
  • To plan for a comfortable life post retirement
  • To handle financial emergencies or unforeseen expenses like accidents, loss of livelihood, etc.

However, it is interesting to note that millennials live through experiences that can be seen in their love for food, music, fashion, etc. and thus they prefer to design their investments so that they don’t miss out of every experience in life be it big or small.

Ways in which millennials can save –

With the thought of ‘live in the present’, a modern age millennials are inclined towards spending to meet their need for instant gratification.  However, with the larger picture in mind, millennials need to ensure a certain level of savings to be ready for the future financial emergencies and the key milestones that they have set for themselves. Millennials are also providers with an upgrader mindset which shapes their parenting style and keeps them motivated to provide a better lifestyle for their loved ones. They have goals like world tours, children’s education or an enhanced lifestyle. Therefore when the millennial goals are so different, so should the financial plan catering to these goals. Hence the ideal product for millennials is one which not only protects the money from unforeseen events but also provides growth of money.

To cater to this need of the modern-day millennial, ICICI Prudential Life has launched the ICICI Pru Lakshya Wealth plan. Let’s see the key highlights of this plan:

 ICICI Lakshya Wealth Plan–

This is a perfect savings plan for millennials who are looking for investments which give them high return without the risk of losing the principal money. The all-new ICICI Lakshya Wealth Plan fulfils both these facets. It offers both the growth of the wealth for the investor and also assures protection of his/her wealth. Some of the benefits of the ICICI Lakshya Wealth Plan are:

  • Sum assured on maturity
  • Guaranteed value benefits
  • Bonus in the form of regular additions (if declared during the term of the plan)
  • Terminal Bonus (if declared on maturity)
  • Tax benefits attached with the premium paid

Hence, you can grow your money for your long term goals and at the same time secure the money in case of any uncertainty. Hence, when the modern millennial needs are changing so should the plan catering to their goals.

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One Comment

  1. Chetan says:

    Wow!!! This is the nice article. Yes… We need the financial planning to save the future. It is very good information. Investment banks provide the all the details related to the finance.

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November 2020