A few days ago the economist Nicolás Litvinoff published a column in the Argentinian newspaper La Nacion, in which he analyses the relationship millennials have with money.

Millennials are those people who were born between 1981 and 2000. Currently, there are 80 million millennials around the world and it is expected that by 2025 they will be 75% of the entire workforce. These youngsters are strongly influenced by technology, as they have grown up in the digital era.

The core idea of Litvinoff article is that as millennials become a larger sector, their consumption and financial habits are more common and are imposed over the rest of society. This leads to a change of paradigm as millennials’ aspirations and ideals are very different to those of previous generations. It is extremely important that companies become aware of such changes so they understand how to deal with the new consumption patterns that are becoming mainstream.

According to Litvinoff, the main characteristics of millennials are that: they do not even think of life without internet; they bet on labour mobility; they value the present and wish to make the most of it; they enjoy sharing knowledge and are participative; they rather live experiences and enjoy life than accumulate goods; and they have an interest on unconventional monetary forms, such as electronic money.

Considering all these facts, the economist states that companies must try to understand millennials in order to adapt their strategies and reach this sector of the population. He gives the example of personal finance’s companies that have learned to catch the attention of millennials by properly interpreting their life philosophy. These companies use mobile applications to help young people manage their personal finances, simplifying processes by unifying their finances and providing assistance through algorithms and personal advice via Skype.

Litvinoff says that any Company that wants to succeed in the years to come must focus their attention on millennials, who shall be their future (as well as current) clients.

“These changes do not occur from one day to another, but to understand them and analyse them will be the key for a Company to survive in an ever evolving, more competitive and globalised economy”, concludes Litvinoff.

To read the entire column of Nicolas Litvinoff in Spanish, click here.