Millennials Are Bad With Money — But It's Not Their Fault

Business Insider spoke to Dan Ariely, James B. Duke professor of behavioural economics at Duke university, and author of "Small Change".

Ariely said millennials' spending habits aren't necessarily down to their personalities and have more to do with the environments they are in.

He added that our environment determines our actions, and we're often put in environments where we are encouraged to spend.

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[Alexander-vgss]

Before you scroll further let me answer your question - burn victim, 3rd degree. Yes he could still shave. You may now return to the video above.

[worldshaper]

I'm a millennial, I was bad with money so I started reading books about money management. I've got better.
We need more info, not excuses.

[Evan_Adams]

The psychological effect the Great Recession had on the older cohort of that generation is very important. When you see your parents loose their house it gives you a total different outlook on debt. Not quite like people who lived through the Great Depression but it is different.

[gordonallen]

He is correct when he states that "your situation shapes your decisions." Millennials are coming of age at the apex of 30 years of trickle down economics that along with the Great Recession, ushered in the largest transfer of wealth in American history in favor of the plutocracy. It has increased the ranks of the working poor, and is slowly killing what's left of the middle class. Between wealth inequality, wage stagnation, and inflation, the majority of Millennials lack the disposable income to buy a home, car, or raise a family. Those who pursued post secondary education are also mired in heavy long term debt. We are becoming a two tiered economy. One affluent, the other poor. And for the majority of those who are poor, no matter how hard you work, upward mobility will be next to impossible to achieve. In the future, I look for Millennials and the rest of the younger generations to reject the "zero sum, " winner take all version of capitalism, and embrace economic principles based in socialism. A rebellion is on the horizon.

[danielspecht]

Millennials can't afford a home at age 25? I couldn't either, it wasn't until I turned 40 that I was finally able to purchase a home. I'm still paying for it and will continue for years but that is my choice. I also had to buy a home in an area that was not my first, second or even third choice. I have a long commute everyday (4 hours total) but most of us have to make sacrifices if there is something we really want.

[hoangkimviet]

This video is the occation to know a new style of beard :0

[shanou]

There’s always plenty of reasons why it’s not “your” fault. Reality is, you are still 100% responsible of every aspect in your life, whatever the circumstance you’ve been dealt. You’ve been dealt a bad card, get over it and fix the problem; educate yourself, learn to discipline. Pointing fingers and playing victim is a form of procrastination.

[modestir]

When you are changing to a werewolves but the full moon suddenly disappear.

[blin]

I m doing ok at 29. Have condo, car n gov job. But most ppl around my age r either finding their career still or doing entry level job. I would say save as much as u can when ur young n have a plan. U will be better off this way.

[samimotag]

Very informative video! Book sounds like it would be a good read

[CazBCraven]

Did the cameraman interrupt him while he was shaving?

[DK-fryu]

Regarding "Millenials Being bad with money, " Dan Ariely is partially correct. Problem lies with both Environment and the Millenial(Self-Control or lack there of).
Obviously, Millenials are not monolithic; some are good with their money, others are not. Dan Ariely should have made this distinction and my commentary is directed at Millenials who are not "economically savvy."
1) Environment as Dan Ariely explained.
2) Self-Control - either Internal or External Locus of Control
a) Ability to know the difference between Needs and Wants
b) the discipline to Consume (mostly) Needs rather than Wants

[kichigaino]

I bought a house at 23, with only a hs degree. There are opportunities but it requires decisions and sacrifices that you may not like. Let's stop placing blame on external factors and start promoting self reliance and impeovement.

[jimjones]

Is this guy actually a professor? What he said contradicts history. Housing prices have always gone up and other generations have been able to deal with it. Now, all of a sudden people (Millennials) don't know how to deal with it? This is exactly what makes him wrong. It's their upbringing. They feel that everything is owed to them instead of working hard for it.

[flowerpower]

I am a millennial but I refuse to be a victim in finances, as victimhood gets you nowhere. Want to be better with money? Look up budgeting strategies and follow real world financial analysts. Get out of debt. Save at minimum 10 percent of your pay. Pay yourself first before paying anything else and stay committed to your budget.

[marieel]

But why do you need a whole house unless you have kids? I'm 21, my husband is 30, we both work full time and I'm also a full time student. I make $12/hour and he makes $15/hour, so actually living below the poverty line in NY. We have a very small one bedroom studio and it's fine for us. We don't need a whole house to ourselves. Why does everyone always want more more more and bigger bigger bigger?

[artimiss]

I saw this in my recommended and thought “excuse you? We don’t have any money to be bad with you ignorant pleebs!” If anything we had to be better with money management cuz of how little we can get to make ends meet.

[MN_Angler]

Millennials don't have money because they suck with money. Things are expensive, that's life. Before you tell me I know nothing, I'm 24 and have a house, newer car, and my student debt is under control and will be paid off by January of next year. It's called a budget and spending less than you make. I eat at home, don't waste money at the local hipster bar down the street and pay all my bills on time. I live in a fairly expensive city where homes around $200, 000 are low end (my house) but it's the smart thing to do. It's not difficult to blame others for your own choices in life, but difficult to have self control and go against the norms of your age group. People shouldn't be shocked that I have a home at age 24. I've always thought that was the norm... but people don't have enough common sense to blow money like debt doesn't pile up and magically disappear.

[thatthieff]

me: Saves 2500$
Car: I'm going to drop dead now.
Dealership: Downpayment is 2500$

[affawnashraf]

Buying a house is just an example. What he is talking about here is very deep, i.e. how rampant social exploitation by corporations are in our society.