Millennials are often perceived as self-absorbed and sceptical. They may often be associated with using technology excessively for all purposes including online shopping and researching whatever comes their way. This generation that has captured news headlines often lately has seen and lived the fallout of the financial crisis, and its members may be less than trusting when they deal with financial institutions.
Although many may not aspire to hold a selfie stick and record every waking moment in a social media post, there is something to learn from this generation’s approach to life. The use of technology and research can help anyone of any age make better financial decisions. It is lucky for all of us to be living in a world that has massive resources at our fingertips, but we need to know how to use them effectively to our advantage.
Making sound financial decisions takes more than glancing at the first couple of results rendered by a Google search, or asking a couple for Facebook friends for recommendations. To ensure that your online research is useful, you must become as savvy as possible in spotting advertising, paid content and scams, of course. You also must develop your skills in reading between the lines for sales pitches and biased advice. Remember, although there are many free, valuable resources online, there is also massive amount of information that has to be filtered and sorted out.
So what can you do as a consumer when you are researching an offer, a service or a product. Here are a few points to keep in mind.
Trust in moderation
Although recognised financial institutions are certainly not scammers, trusting what is being offered to you as the best solution for your needs may be doing yourself a disservice. Until you shop around, you really won’t know if an offer is good or not.
As simple as getting a credit card, there is a multitude of option out there, and some can save you a bunch while others may be costly. To know that you’re getting the best deal on a card that meets your need, do an independent research of what banks are offering and what you can get.
Having said that, if you have a trusted financial adviser inside or outside of your bank, you may eventually come to trust this person in doing the shopping on your behalf. And if this person is able to explain why your rate and terms are competitive, then you may proceed without having to check around.
To build this level of trust, however, you must scrutinise the advice you’re getting initially. Do a thorough comparison based on your research to know your options, and ensure that you’re getting the best deal you can get.
Filter promotions
You know that a box of juice or cereal that is marked healthy isn’t necessarily so. Similarly, filter any promotional language associated with your offers and products. If a bank advertises best rates, check around to verify. If a product claims to be the state of the art, read reviews and compare specifications for yourself.
Apply this same critical thinking when you’re receiving offers verbally from a sales or bank representative. Be prepared with a list of questions to ask, and take your time to compare offers as thoroughly as possible. Don’t get stuck on one point (like price), because sometime a cheaper offer isn’t necessarily better, although it might be attractive for a price-conscious consumer. Retailers and service providers promote their products in various way hoping to appeal to whatever you care about.
Once you learn how to focus on facts and filter promotions, you will be better positioned to compare offers quickly. This approach may get you involved in a lot more research and you may appear to be sceptical of information received from others, but it should help you make better decisions — somehow like a millennial.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
Do your research
Know how to question offers and services
Look at the options available to you
Don’t fall for promotions
Be prepared to make comparisons
— R.O.
