How often do we see articles saying how difficult it is to engage Millennials with money?
Well this research from the Money Advice Service shows that 16-24 years olds rate managing their money as more important than getting a job they enjoy and comes only second in their priorities to spending time with family and friends. So engagement isn't really the issue.
Another myth buster is that Millennials spend their whole time on Apps and so many money Apps specifically target this group. However, the research showed that less than 30% use Apps to help manage their money.
Many Millennials are extremely wary about taking out credit, taking heed of horror stories they had heard or read about and many had been warned off credit by family and friends.
Whilst many Millennials agreed they don't know where to turn for help when making money decisions, 60% did seek some form of guidance before making financial decisions showing that whilst they may lack financial acumen, they are not inherently egotistical or risk takers.
Another myth this research busts is that Millennials do recognise the need for and importance of self-control when applied to managing their money.
Many Millennials do keep a track of their money with over 80% checking their bank balances. Whilst 44% did use a budget to manage spending, others don't do so in such a structured way say ensuring their pay checks first paid essentials bills before seeing what was left for discretionary spend. And for others budgeting was done by weighing up short term deprivations to afford money goals eg giving up going out for 3 nights to buy a watch.
Millennials do want more education about money at school and 85% said they were not taught enough about money in school.
This group are saving with savings accounts, giving money to relatives on pay day to remove the temptation and even saving money into notice accounts so they couldn't withdraw it easily.
Despite some positive green shoots of interest in money, this research did highlight that Millennials are concerned they will never be able to afford to get on the housing market and a general lack of optimism about the certainty of their future which impacted their engagement with medium and long term savings plans. So more still needs to be done to give them more confidence, raise awareness and support them to look towards the medium and the longer term as well as improving their short term money management.
Being money savvy is necessary, but not cool, say millennials