A recent survey suggests that one way to attract Millennial clients is to help them save for their holidays.
Research conducted by TD Canada Trust shows that 90% of Canadian Millennials say that vacations are essential to their happiness, and 89% indicated that time off from work is “important for personal growth so they can focus on other interests”. However, almost half (46%) of those in this demographic are not taking their full allotment of vacation days, which is significantly higher than the national average (36%).
Can’t afford travel
Asked why they are not taking holidays, 31% said their workload was too heavy and 29% said they could not afford to travel.
Shirley Malloy, associate vice president of everyday and cross-border banking at TD Canada Trust suggests that Millennials may lack perspective since they are inundated with reports of extravagant travel on social media. "Taking time to recharge doesn't have to mean an expensive, exotic travel destination," she says. "Lower cost options like a staycation can be easier to budget for and can offer a stronger ROE or Return on Enjoyment."
Create a budget
Malloy recommends that Millennials begin by identifying how they want to spend their time off and then create a budget that takes hobbies and vacations into account.
"To start saving for these investments in yourself, take a month to track all money coming in and going out to get an idea of where you can cut back on your spending, even slightly," says Malloy. "Take those savings, no matter how small, and set up an automated savings plan aligned to your pay deposits. The automated savings plan can transfer funds into a high interest savings account to take advantage of compound interest."
The survey also reveals that Millennials could make better use of credit card reward programs, as only 24% of people in this age group use loyalty points to fund pleasurable expenses such as vacations.