The rise of the millennials

This year the first millennials turn 40. Now ranging in age from 25 to 40, this cohort is also known as gen Y and follows gen X (from mid-1960s to early 1980s). Parents of millennials are usually gen X or baby boomers (born 1945-1965).

Each generation has had its money issues. Baby boomers were able to take advantage of thriving economies after World War II, buying into the dream of home ownership often as early as in their 20s. They bought things for the house as they could afford them. Credit wasn’t as easily available as it is now.

Gen X, now aged between 41 and 57, faced high interest rates, recessions and tough job markets.

It’s millennials’ turn in the spotlight. Now facing life’s big decisions, they’re likely to be in the throes of buying their first property, having children and starting on their journey of accumulating wealth.

Here we look at what steps digital-savvy millennials are taking to overcome the challenges and thrive.

New set of challenges – and opportunities

According to economist Nicki Hutley, millennials have different economic and financial opportunities and challenges from previous generations. “This is the first generation that is likely to be less well off than predecessors, due to relatively slow wages growth and the ridiculous speed of house price increases.”

There is a bright side, though. Employment prospects are better in many ways.

“Tertiary education has increased, so opportunities and skills have increased. People can move into higher paid work if they have that advantage,” says Hutley.

Real wages have stagnated, so the standard of living is not improving for millennials at the pace it did for many boomers and that affects long-term investing prospects and retirement.

“The issue of housing affordability is the biggest challenge,” she