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Millennial money matters: Experience economy or financial stability?

Millennial money matters: Experience economy or financial stability?

Communications research student Diego Fodulla beams proudly as he presents his most recent prized possession: his new Nintendo Switch.

The 20-year-old gaming enthusiast saved up for four months for this. Viewing gaming as a de-stressor, Fodulla thinks the purchase was worth the wait and the hefty price tag, as the console allows him to play anywhere and broadens his options as a gamer.

Since he bought it, he has played his favorite games such as Pokemon Let’s Go Eevee, Just Dance, Super Smash Bros and Overcooked.

When asked about the best part of this buy, Fodulla simply answered: “I get to play with my friends who also have Switch, and my friends also go to my place and we play.” Fodulla said that the console has given him and his friends memorable quality time, as they areable to strengthen their bond over interactive gaming.

Like most millennials, Fodulla spends on experience, placing high value in purchases that grant him real-life experiences, which in turn allow him to bond with the people he cherishes. Affirming this, Fodulla mentioned that the next thing he is saving up includes a trip to the beach trip with friends and the new Legend of Zelda game.

“I do think millennials value experiences, like travels, more than more tangible stuff like housing; with one not being any better than the other,” he said. “The millennial generation truly values the . life that they were given and want to make the most of it as early as possible, which distinguishes us from the generations that came before us.”

In a study conducted by the Harris Group, 72 percent of millennials spent more on experiences rather than material things.

However, millennials also have a penchant for purchasing “experiences” through debts due to the so-called “fear of missing out,” according to the Social Enterprise Development Partnerships. Inc. Because of this peer pressure to conform, millennials rather spend than save. This has created a scenario where eight out individuals globally of 10 are without sufficient savings for emergencies such as medical expenses and car repair.

At home, roughly seven out of 10 Filipinos are still without a bank account, echoing the global trend for millennials.

Opportunity for digital savings

Despite this lamentable reality, GCash, operated by Globe Fintech Innovations Inc. (Mynt), sees a huge opportunity to bring financial services and wealth management products closer to millennials.

Through its GSave feature, GCash helps millennials unlock the opportunities in savings through their mobile phones.

“The power of mobile technology is endless. There’s a huge opportunity in providing access to young people through opening accounts via GSave. We’re very dedicated to our purpose of financial inclusion,” GCash Head of Financial Services Kim Seng said.

To promote savings among millennials and other generations of Filipinos, GSave allows users to open savings accounts via the GCash app where they can earn up to 10 times more interest rate, as opposed to traditional banks. It also has no initial deposit required, no maintaining balance and charges no additional fees for offering its services.

With GSave, users can also move their money seamlessly between their GCash wallets and their GSave account.

Savings for future proofing, investments 

Thanks to its partnership with Malaysian bank CIMB, additional features are in store for GSave account holders. In the near future, users can deposit and withdraw funds in over 8,000 CIMB partners nationwide. Online transfers will also soon be available between CIMB accounts.

“Our approach to banking is tailored for this millennial generation. As the most connected generation that grew up with the information at the palm of their hands, they search for convenience and innovation, and we can provide that experience for them through GCash,” Seng said.

Besides promoting convenience, GCash’s purpose is to encourage the younger generation to create a more secure and stress-free future by offering great advantages preceding generations did not have when they were their age.

Aside from having emergency cash, savings create capital for future investments, which can allow millennials to gain income and reach their personal financial goals along with a successful career and financial independence.

Moreover, savings grants millennials self-determination from credit. Because they have sufficient funds, they need not turn to loans or use credit to attain their financial targets. Aside from all these, GSave offers millennials a better experience as they are now afforded with the power banking in the palm of their hands. Since savings are usually spent in emergency situations, GSave grants users one less thing to worry about in case the unexpected happens. With ample savings, millennials can continue enjoying the experience economy they relish now when they grow older. They can travel abroad, enroll in classes and gain new and fulfilling experiences.

Hearing these benefits, Folluda considers opening up a GSave account through his GCash app.

“Coming from a family that did not start with a lot, I truly value financial security,” he said. “I know how it feels to take loans and cut costs for education, so I try to be as financially smart as I can.”

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