Smart personal finance decisions at an early age can be quite important, especially when looking toward an individual’s financial future. Many young people are taking this information to heart and trying to get on the right financial path.
Nearly half of millennials noted that they are careful about their own financial decisions, according to a report from TD Bank. However, some people are only using a few outlets to improve their financial education. A total of 49 percent of those polled noted that their parents’ decisions are a big reason that they have their financial ideas. Another 40 percent noted that they still ask their family members various financial questions.
However, many are also looking toward financial institutions for information. The report noted that 54 percent visit their local branch to learn more about banking, while another 62 percent use the Internet.
“The results of our study prove that financial education is not only a key component of financial success, but also that millennials want more support with their personal finances,” said Nandita Bakhshi, executive vice president of retail distribution and product at TD Bank. “Millennials need to feel empowered to reach out to their bank and have their questions answered so they become more confident about their financial futures.”
Even with young people having a wealth of information about finances, some are looking for more on certain topics. The report showed that nearly 60 percent of those polled felt they were quite knowledgeable, nearly one-third felt that they could use more information about savings. Another 26 percent said the same about credit cards, and 30 percent noted this regarding budgeting.
Americans try to save more money
While many young people are trying to master a financial strategy, Americans in general are looking to boost their situation. According to a report from the Certified Financial Planner Board of Standards, Inc., 51 percent of Americans have a defined savings plan.
“We know it’s important to set money aside regularly, for a rainy day and a sunny future, but it obviously isn’t always easy to do,” said Eleanor Blayney, consumer advocate at CFP Board. “We need to reverse the ‘easy to be bad’ and ‘hard to be good’ dynamics that determine our spending and saving behavior.”
Another 64 percent have enough emergency savings to get them through a rough patch, the report added. However, just 40 percent have a plan that gives them a significant amount to save.