According to Aušrinė Mincienė, Head of Everyday Banking at Luminor Bank, different financial habits are not necessarily bad – the most important thing is to understand your behavior and learn to manage potential risks.
The first place where we learn financial behavior is the family – from attitudes towards saving to daily expense planning. Although these habits often accompany us into adulthood, they are not unchangeable. The better we know our financial behavior, the easier it is to make decisions that align with our life goals,” says the Head of Everyday Banking at Luminor Bank.
Spontaneous buyer
Young people of this type often act on emotions – seeing a discount or a long-desired item, they make decisions instantly. For them, money is primarily a means to enjoy life, so saving often takes a back seat.
Although this approach allows enjoying the present, over time it can make achieving bigger goals – travel, studies, or the first home – more difficult.
“In the long run, even small but unplanned expenses can significantly affect the monthly budget, so it is worth giving yourself at least 24 hours to decide before a bigger purchase. It is also useful to set a monthly amount for spontaneous purchases in advance – then you don’t have to completely give up pleasant expenses, but they don’t interfere with achieving long-term financial goals,” explains A. Mincienė.
Frugal planner
Frugal planners carefully plan their budget, track income and expenses, regularly set aside part of their income for savings, and avoid impulsive purchases. They usually have clear financial goals – from a trip or a car to a down payment for a home – and pursue them consistently.
Such financial discipline is a great advantage, but sometimes saving itself can become the goal. In trying to accumulate as much money as possible, people may refuse to invest in their skills, health, or meaningful experiences that also create value over time. Moreover, an overly strict budget often becomes hard to maintain – the desire to “make up for it” may arise, leading to more impulsive decisions.
“Saving should not mean constant denial. A healthy relationship with money arises when the budget allows for not only future goals but also today’s needs. If a person constantly feels they have to forbid themselves everything, it becomes harder to maintain such a financial regime over time,” advises A. Mincienė.
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Digital finance enthusiast
Mobile banking apps, contactless payments, digital wallets, and various financial management platforms have become an integral part of many young people’s daily lives. They eagerly try new technologies, monitor their expenses in real time, and appreciate the ability to manage finances quickly and conveniently.
According to A. Mincienė, the simpler the payment process, the easier it is to lose touch with actual expenses. When purchases are paid with a single phone tap and subscriptions are automatically deducted every month, some expenses may go unnoticed.
“Technology can be a great tool for managing finances, but it does not replace conscious decisions. Convenience should not be a reason to pay less attention to your expenses – it is worth regularly reviewing subscriptions, automatic payments, and evaluating whether each service still creates value,” emphasizes the Head of Everyday Banking at Luminor Bank.
Early investor
Investing is becoming increasingly popular among young people – many take their first steps in financial markets while still studying or after starting their first job.
However, A. Mincienė points out that this is where risks may lie. Beginner investors often rely on advice from social media influencers, seek quick profits, or choose risky investments without fully understanding how they work. Such decisions can lead not only to financial losses but also to disappointment with investing in general.
“The most important thing to understand is that investing is not a race where the fastest wins. Consistency, clear goals, and understanding why you invest are much more important. Before starting, it is worth ensuring a financial cushion for unforeseen cases, assessing your risk tolerance, and investing only the funds you will not need for daily expenses in the near future,” emphasizes A. Mincienė.
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