Millennials are defined as those aged 18-29 years, and in many ways, they have a very different relationship with money and investment services than previous generations have. While wise investing is still a priority, this generation manages finances and interacts with wealth managers in unique manners.
Read on to discover 5 ways Millennials relate to and manage their money.
- Due to the Great Recession of 2008, the vast majority of Millennials don’t trust major financial institutions. Managing their money is still a priority, but they highly value transparency. It also means they’re skittish towards investing in the stock market.
- Previous generations were content to let their financial advisors make monetary decisions on their behalf. But Millennials conduct more research prior to choosing an advisor, and expect a collaborative relationship.
- More than a third of Millennials don’t have a credit card and have little to no interest in obtaining one. The 2009 Card Act created strict limits on how credit cards are marketed and issued to young adults, making it more difficult to get them. Plus, Millennials have little interest in taking on credit card debt.
- Millennials aren’t too interested in face-to-face meetings with their financial advisors. They prefer texting, email, and videoconferencing on services like Skype. Additionally, using social media to read blogs and useful articles is highly popular.
- Millennials prefer to make use of financial products that are straightforward and easy to understand. Complicated products like annuities are out of fashion, whereas simpler tools like a Roth IRA are more direct and more transparent.