Surveys
US Millennials Not So Different After All Over Money - BoA Study
Forget the cliches and the characterizations - this younger adult cohort is not spendthrift or careless about finances, a point for wealth managers to consider, a study says.
US citizens born from the mid-80s through to the turn of the century are as likely to save and run a budget as is the case with older generations, pushing back at the idea of "Millennials" being less hard-nosed over finances, according a study by Bank of America.
The study, entitled the Better Money Habits Millennial Report, surveyed 1,500 respondents who fell between the ages of 18 to 71. The survey was conducted online in English and Spanish from September 22 – October 16, 2017.
It found 63 per cent of Millennials - defined as ages 23 to 37 - are saving, and they are more likely to say they have a savings goal (57 per cent) than members of "Gen X" (42 per cent) and Baby Boomers (42 per cent). The majority of Millennials who have a savings goal meet that target (67 per cent).
Roughly three quarters of US citizens polled claimed Millennials spend excessively on indulgences and will have trouble meeting long-term goals - a view that this younger cohort think is also the case: the majority of them (73 per cent) accept this unflattering characterization.
However the report also found that Millennials are just as likely to budget as older generations. Around 54 per cent of them plan and manage a budget, compared to 54 per cent of Gen Xers and 57 per cent of Baby Boomers. Around three-quarters of Millennials who budget confirm to it.
“Young adults deserve more credit – from others and themselves – for the way they are handling their finances,” said Andrew Plepler, global head of environmental, social and governance at Bank of America. “They’re on par with or even better than older generations, which defies common stereotypes.”
Despite being an overused term that arguably involves sweeping assumptions, the population segment known as Millennials is catching the eye of financial institutions, as trillions in wealth looks to be passed down to the generation. Therefore, banks have to try and figure out how to cater to them.
