Millennials are concerned about and want to plan their financial future, and they are open to education and advice, iQuantifi says in its Millennial Money Mindset Survey. They may be particularly open to online tools and advice, since the Internet is where they spend a lot of their time.
A look at the financial behaviors and goals of Millennials, the survey identifies their biggest challenges for this generation are not making enough money (56%), staying on budget (41%), developing a budget or financial plan (28%), managing debt (27%) and understanding where and how to invest money (26%), among other concerns.
And any notion that Millennials are uninterested in their financial futures is completely discounted. The survey found nearly three-quarters of respondents (72%) saying they do have financial goals. But when it comes to formulating a plan for the future, it does fall down a bit. Just 20% of Millennials surveyed say they have one.
Money seems to be very much on the minds of Millennials, as 59% of respondents said that increasing overall savings was a major goal for the next year, and nearly half (43%) indicated that they would “do whatever it takes to achieve” their financial goals.
Millennials’ top savings goals include saving for retirement (64%), saving for a vacation (68%), buying a car (66%), paying down credit card debt (63%), and saving for a house (60%). Millennials are interested in using online solutions to plan their futures, with 76% saying they would consider using a free application (app) or online tool to accomplish their goals.
Interestingly, while more Millennial men say they have financial goals (76%) than women (68%), the women are likelier to say they will highly prioritize their financial goals (49%) than men (43%).
Millennials recognize the importance of setting financial goals, but they are grasping for ways to reach them, notes Tom White, iQuantifi’s chief executive and co-founder. He describes the need for advisers to help Millennials set goals as an untapped demand.
Other findings from the survey are:
- 72% of Millennials set financial goals;
- 71% seek advice from family;
- 45% turn to friends for financial assistance;
- 29% have used a financial adviser; and
- 20% have a comprehensive financial plan.
The Millennial Money Mindset Survey of 500 randomly selected Millennials between the ages of 21 and 35 was conducted online by iQuantifi in partnership with Middle Tennessee State University in February of 2015.
iQuantifi, in Nashville, provides online, goal-based planning and advice to Millennials.