Millennials may be saving for retirement already, but many remain daunted by money management and wary of financial advice, according to a new report from US finance company Principal Finance Group.
The report surveyed more than 800 US workers aged 23 to 35. We highlight key insights for brands:
- Put Them In Charge: Most millennials (83%) feel they should be financially independent by the age of 25, while more than a third favour a lower limit of 21. Consider designing tools that help this demographic take control of their financial affairs.
- Help Them Save: Badly scarred by the recession, nearly two-thirds of respondents over the age of 25 have already started saving for retirement. Demand is rising for money-management apps that offer fast, simple solutions – see Millennials & Banking for more.
- Simplify the Scary Stuff: Some 37% of millennials find the stock market daunting, while 29% consider student loan debt an intimidating issue. Mobile-first tools such as Robinhood aim to simplify the stock market for digital natives.
- Earn Their Trust: Just 34% believe financial professionals work in the best interest of their clients – and only 25% of those surveyed have approached a financial professional for advice and guidance. Read Financial Advice for Millennials for a tailored approach that will win the trust of this wary demographic.
- Don't Call, Email: More than 40% of those surveyed would rather interact with financial companies over email – far ahead of phone calls, online chat, social media or in person.
For more coverage of banking for digital natives see Bite-Size Banking.