AZpire Growth to Inspire Millennials

Millenials are usually defined as being financially irresponsible, spending too much on impractical things or experiences, but they are actually positioning themselves to be in better financial shape than other genrations, according to the Generations Ahead Study from Allianz. The study found that 77% of millennials feel financially confident (compared to only 64% of Gen Xers). 

Further supporting this financial progress:

• 41% of millennials always set aside money each month for saving  (compared to only 36% of Gen Xers).
• 58% believe saving for a retirement  is a basic necessity. like food or housing.

71% of millennials also use "tricks" to make saving money easier. For example, a greater number of them use several accounts to automatically save their money for distinct puroposes (separate accounts for everyday expenses, loan, specific trip, investment, emergency fund, etc.).

Social Media Dangers

As their financial strength builds, however, social media has become the millennials financial Achilles' heel.

• More than half (55%) reported experiencing a fear of missing out (FOMO), and
• 57% spent money they hadn't planned because of what they saw on social media feeds.
• Vast majority (88%) of millennial respondents also beliee social media creates more of a tendency to compare one's wealth/lifestyle with others (versus 71% of Gen Exers and 54% of boomers).
• 61% feel inadequate about their own life and what they have because of social media
• And as it maybe due to this FOMO, half also claim they spend more money going out than they do on rent or mortgage.

It had a profound effect to the millennials who witnessed the recent financial traumas.

• Almost a quarter (24%) of millennials saw their parents suffer a major financial setback during the recession of 2008-2009 and could be that becaud of this,
• 57% said they are unlikely to ever invest in the stock market.
• 65% are uncomfortable with too much debt because they saw their parents struggle with it. 

The study also found that this generation is the most open to getting support.

• 70% use online apps or tools to help them manage their money, human support is still very helpful to them.
• 40% of millennials said they have a financial professional and work closely with them (compared to only 25% of gen Xers).

They also choose to communicate in person with a financial professional (42% ranked it as their first choice with phone communication coming in second at 19%). Many millennials believed having a financial professional would give them some relief from the pressure of trying to plan for their family's future, as 70% are overwhelmed by the thought of how they could provide for themselves and their family in the long term.