Nearly three-quarters (72%) of Affluent Millennials—those born between 1981 and 1997 with $100,000 in investable assets, not including real estate—are willing to make financial sacrifices today in order to have a brighter future. This is according to “Winning Affluent Millennials,” a survey LinkedIn conducted among Millennials.
With the sacrifices they are making today, they are gearing up for big goals in the future, with 30% planning to start a business, 27% expecting to buy a second home and 19% intending to start a charitable foundation.
Affluent Millennials are carrying debt on their credit cards (67%), via personal loans (43%), student loans (43%) and business loans (35%).
Despite this debt, they are aggressive savers, socking away a median 24% of their paychecks. In fact, 66% save more than 25% of their paychecks, and 50% save more than 35% of their paychecks.
They prefer to research investments on their own (47%), and make financial decisions and execute trades on their own (50%). “It appears that Affluent Millennials might approach their own finances with a greater sense of ownership than previous generations,” the report says. “When it comes to managing their finances, it’s clear that Affluent Millennials want more control.”NEXT: Affluent Millennials’ views toward advisers
Nevertheless, Affluent Millennials value an adviser, with 87% considering financial advisers important. Thirty-seven percent call advisers a “must-have.”
They also foresee a vastly different financial landscape in the future, with 32% foreseeing a completely cashless society, 27% think banks will no longer be the primary financial institution, and 24% expect a sharing-based economy. The vast majority, 69%, are open to financial offerings from non-traditional brands—and many are already making use of alternative payment platforms. Thirty-four percent use Apple Pay, 31% use Goodle Wallet, and 25% use Samsung Pay.
Once they work with a financial institution, 95% say they are very or somewhat loyal toward that organization. Nearly two-thirds, 64%, trust their financial institution.
“This willingness to venture outside traditional financial services brands, combined with the tendency among Affluent Millennials to remain loyal to providers once they become customers, could cause quite a shakeup throughout the finance world,” the report says.
As to what they look for in a financial institution, 90% want them to make use of social networks. Ninety-one percent of Affluent Millennials use social networks to research opinions about financial markets and investment opportunities, and 84% turn to social networks to find financial product reviews by current customers.
LinkedIn and Ipsos surveyed 9,200 Millennials and Gen X’ers in April. The full survey can be uploaded here.