While there may be some concerns about the ability of young people to properly manage their money, they actually may be becoming more responsible with their personal finance plans.
Approximately 30 percent of millennials noted they value the idea of acting slowly when it comes to their savings and investment, according to a report from Northwestern Mutual. Another 30 percent explained that they think they need to pick up their savings frequency, but they would like to be careful about their progress.
Nearly 70 percent of those polled felt that they can always strengthen their personal finance management, the report showed.
“Many twentysomethings have fairly straightforward finances at this stage in their lives, so it makes sense that only a small percentage work with advisors,” said Greg Oberland, executive vice president of Northwestern Mutual. “But clearly, the appetite and attitudes make for great opportunity. For advisors, the message is clear – if they can meet in kind the interest, discipline and humility of Millennials, they may very well have relationships for a lifetime.”
Less than 15 percent of those polled said that they are trying to get as much growth quickly, which may suggest that many are acting more conservatively, the report explained. More than 60 percent noted they considered that they have a notable level of financial discipline, while just 54 percent of those ages 60 and older said the same.
Struggles still remain
Even with many young Americans taking measures to be more responsible, struggles still remain. According to a report from PricewaterhouseCoopers, a total of 51 percent of millennials are dealing with credit card balances that carry over consistently. This was 14 percentage points higher than in 2013, and the only generation that experienced an increase.
“While last year our results showed that Gen X carried the heaviest financial burden as they were pulled between obligations to their parents, children and their own retirement, their financial health, along with that of Baby Boomers, appears to be recovering faster than Gen Y employees,” said Kent Allison, partner and national practice leader of the employee financial education program.
Another 41 percent explained that they have problems paying off all of their monthly expenses, the report added. This was 11 percentage points higher than the previous year, as well as the only age category that rose.