A Quarter of Millenials Feel Unprepared for Dealing with Finances
Results from a new survey of millennials from Ally Financial showed that a quarter of them feel that their education did not adequately prepare them for dealing with their finances and that half need help with their finances. The survey was of 2000 millenials aged 18-34 and sought to provide insight into millenials financial views.
As the complexity of the financial world has increased, millennials are daunted by the challenge of navigating its features and often turn to family and friends for help after graduating college. Of those surveyed, only 1/3 reported that they were “very confident” in dealing with financial issues like investment, taxes, and planning for retirement.
There are several factors that contribute to this feeling of unpreparedness and fear that millennials have. One of these is simply that they have not had as much experience in the financial world as other generations. Kimberley Palmer of NerdWallet.com noted, “I would guess as you get more experience and have practice managing your finances, you become increasingly confident.”
Other factors may have less to do with inexperience. Another impact on millennials was their coming of age during the Great Recession. Watching the effect of this downturn on their parents may contribute to their uneasiness with the markets and other financial institutions and their penchant for saving.
A third component leading to their feelings is the reality that they are less well-off than the generation before them. Lower salaries, rising home prices, and tougher lending standards are all factors millennials must face.
Despite these conditions, millennials’ expectations remain high. The survey found that the average millennial believes they must make a minimum of $53,000 while for men that figure jumps to $118,000. These numbers are in stark contrast to the reality that the average income for millennials is $35,000.
Perhaps the most surprising result was that it found that fully half of those surveyed believed that they would never be able to retire.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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