Who are we talking about when we talk about Millennials? That would be ages 20-36 years old. All of a sudden, they are married, have children and are bosses themselves. Finance expert, Bruce Sellery is partnered with N-Gen, a consulting firm that focuses on this generation to study who Millennials are and how they think about their money.
How is the environment for Millennials different when it comes to money?
- Student debt
• Larger than parents
• University is more valuable, but more expensive
• “Gig economy” – excitement/opportunity, no pensions or security
- Real estate
• Crazy prices
• CIBC poll – 23% of Milllennials believe they will never own a home
What about their plans for retirement?
- Hybrid version, versus binary. Because…
• Live longer
• Fewer pensions
• More expenses – makes it harder for them to save
- Consumer culture
• More stuff available
• More sophisticated marketing to sell it
• Easier access to credit
• Abundance of choice: Indecision
• App for everything, including money
• Instant gratification
How are they different when it comes to their money?
• Create a life with meaning
• Definition of success: Live a good lifestyle (vs “rich)
• Confidence, diversity, optimism
• Everyone is different, but the social impact value is way, way more common
• Career choice
• Investing with impact
- Wealth transfer
• We have seen part of this in major cities – with parents helping kids buy a home
• Some will receive huge amounts will pass down from parents
• Some think they will, but will not. And will be disappointed
How are they the same?
- Still need to:
• Live within their means
• Eliminate high interest debt
• Save for retirement, even if it is a hybrid
- Feel confused, incompetent and anxious – low financial literacy rates
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