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October 18th, 2014 at 8:31 am

1 in 4 Millennials trust ‘no one’ when it comes to advice about money

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39 percent of millennials worry about their financial future at least once a week or more.

When it comes to information about financial matters, about a third of millennials trust their parents most, but nearly one in four say they trust “no one” when it comes to advice about money, according to Fidelity Investments.

 

 

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Fidelity’s first-ever Millennial Money Study, released Wednesday, showed that a general lack of trust among U.S. Gen Y-ers (born from 1980-89) might indicate they’re more independent and like to make their own decisions on money.

But the study also found that 39 percent of millennials admit to worrying about their financial future at least once a week or more.

Women tend to be less confident than their male counterparts, with 19 percent of millennial men saying they never worry about their financial security, whereas only 2 percent of women said the same.

“Feeling financially ‘on their own’ about finances also could be fallout from the Great Recession, since many Gen Y-ers witnessed their parents and grandparents struggle with the impact of job losses, tighter budgets [and] declining retirement accounts,” saidKristen Robinson, senior vice president, Fidelity Investments.

“Whatever the reason, this generation fortunately has a big advantage — the luxury of time, as nothing is more powerful than the impact of saving early and often,” she added.

Three quarters (76 percent) of Gen Y-ers said they don’t have any difficulty starting conversations with parents about saving and investing for the future. But almost half (49 percent) admit they don’t ever receive financial advice from their parents, and 27 percent said they don’t tell their parents anything when it comes to money.

But many millennials surveyed by Fidelity were serious about saving. Nearly half (47 percent) have already started saving for retirement, with 43 percent indicating they have a 401(k) and 23 percent indicating they have an IRA.

“This trend toward saving is encouraging, especially since the oldest of this generation are now juggling competing demands, such as saving to buy a house, raising a family or starting a college fund for their own children,” says Robinson. “Finding ways to turn positive savings habits into more deliberate investing strategies can make a huge difference — and may provide the peace of mind many millennials desire.”

Boston-based Fidelity opened a large regional customer service site in Greenwood Village in 2013 that will eventually employ about 500 people. The privately held company employs about 41,000 people nationwide.

Fidelity held assets under administration of $4.8 trillion, including managed assets of $2.0 trillion, as of May 31.

Photo credit: Business Insider

Via Denver Business Journal

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