From “Generation Rent” to the Wealthiest Cohort: How Millennial Financial Habits Are Changing

For years, UK millennials have been portrayed as a “generation rent,” locked out of home ownership by high student debt, fast-rising property prices, and sluggish wage growth. But the narrative is shifting. A profound economic transformation is underway, shaped both by the largest intergenerational wealth transfer in history and by changing financial habitsthat are reshaping

how millennials build, manage, and invest their money.

Early Investing and the Digital-First Mindset

Younger generations are entering the world of investing earlier and more digitally than any before them. According to a recent World Economic Forum study, nearly 30% of Gen Z began investing while still at university, compared to just 15% of millennials. By the time they graduate, more than eight in ten have already been exposed to investing—often via app-based brokerages, robo-advisors, or even AI-driven tools.

For millennials, accessibility matters. Commission-free trading and easy-to-use platforms have lowered barriers, making it normal to test investments in ETFs, crypto, or side projects. However, there is a confidence gap: Deloitte’s 2025 Gen Z and Millennial Survey of over 23,000 millennials and Gen Z across 44 countries reports that 46% of millennials say they do not feel financially secure demonstrating caution in their approach to money.

Money, Meaning, and Well-Being

Financial health for millennials is not just about the numbers, it’s about meaning and security. Deloitte’s 2025 survey found that financial well-being directly influences how purposeful people feel at work and in life. When money feels uncertain, mental health and career satisfaction suffer; when financial security is stronger, individuals are more likely to thrive.

Interestingly, climbing the corporate ladder is no longer the main aspiration. Fewer than 1 in 10 prioritize traditional career advancement, instead seeking skill growth, flexibility, and the ability to align work with personal values.

Sustainability: A Core Value—With Real Tradeoffs

Morgan Stanley’s “Sustainable Signals” survey (2025) found that 97% of millennials are interested in sustainable investing, and 80% plan to increase their allocations to ESG assets this year. Already, about two-thirds of millennial investors dedicate over 20% of their portfolios to socially responsible funds.

Yet, enthusiasm has been tempered by economic reality. A Business Insider analysis of Stanford research revealed that concern for ESG dropped from 70% in 2022 to under 50% in 2023, with investors less willing to forgo returns for sustainability. While values remain strong, cost-of-living pressures are reshaping how much people can act on them.

The New Norms in Millennial Finance

Together, these shifts mark a profound evolution in how millennials think about money:

• Digital-first & experimental: Comfort with apps, AI, and even crypto means millennials engage with money differently than past generations.

• Purpose-driven: Decisions are filtered through values like sustainability and well-being, not just financial gain.

• Sustainability balanced with pragmatism: Millennials want to align money with values, but in tough times, financial security comes first.

As trillions in assets are set to shift hands over the coming decades, the financial identity of millennials will shape not only markets but also how capital is aligned with social and environmental goals. What’s clear is that this generation is rewriting the rules by merging technology, purpose, and pragmatism into an entirely new approach to money.