As Children of the Great Recession, Millennials Have Become Tight-Fisted Savers, but with the #YOLO Social Pressure to Spend
August 15 2016 - 8:30AM
Business Wire
TD Ameritrade Survey: Gen Y aspires
financially vs. Boomer parents/grandparents, online life has made
them comparison spenders
The TD Ameritrade Millennials and Money Survey reveals
Millennials may have more in common with their depression-era
counterparts than their Boomer parents or grandparents. Of the more
than 1,000 Millennials surveyed:
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TD Ameritrade's 2016 Millennials and
Money Survey (Graphic: TD Ameritrade)
- Sixty-two percent identify as savers;
80 percent have a budget
- Vast majority don’t feel financially
secure now, but expect to be in the future (85 percent)
- Nearly half are anxious about debt (47
percent)
- More than three-quarters would stash an
extra $1,000 in a savings account instead of the stock market (77
percent)
“The Silent Generation and Millennials came of age during a
major financial crisis, which increases the propensity to save and
financial conservatism,” said Matthew Sadowsky, director of
retirement and annuities at TD Ameritrade, Inc., a broker dealer
subsidiary of TD Ameritrade Holding Corporation. “Further adding to
Millennials’ financial anxiety is the economy, student debt, and
escalating peer influence from social media.”
They’re not just keeping up with the Joneses – they’re keeping
up with everybody. Thanks to social media, Millennials feel social
pressure to spend or keep up with others more so than elder
generations:
- Social media is much more likely to
cause Millennials to compare themselves to others than Boomers (64
percent vs. 29 percent)
- Nearly a quarter of Millennials feel
pressure to keep up with the spending habits of their friends (24
percent)
- Fifteen percent of Millennials admit to
spending money to make a good impression
- “I need a somewhat
substantial/substantial amount of money above the minimum needed
for essentials” (57 percent Millennials vs. 34 percent
Boomers)
- Millennials are more likely than
Boomers to report having spent more/not saved as much in a month
than they wanted to (56 percent vs. 29 percent say this happens
very often/somewhat often)
Who do they listen to? How do they invest?
- Millennials consult parents (38
percent) and/or friends (28 percent) for financial advice while
Boomers are more likely to consult a professional advisor
- Millennials are more likely to feel
confident investing using a combination of online and human contact
than Boomers (40 percent vs. 33 percent)
Millennials view home ownership as important and have realistic
views of retirement savings hurdles:
- Two-thirds of Millennials are saving
for a down payment on a home (66 percent)
- Millennials consider 29 the ideal age
to become a homeowner
- Almost half are concerned about running
out of money in retirement (49 percent)
- More than half are willing to retire
later to maintain their desired retirement lifestyle (53
percent)
Millennials and Boomers are on the same page when it comes to
many financial attitudes:
- Saving, as opposed to spending, makes
Americans feel secure and, as a result, happy (80 percent)
- The number one reason to save is to
have the confidence you can meet your financial obligations
whatever happens (66 percent)
- Millennials and Boomers are optimistic
about feeling financially secure in the future (41 percent
overall)
“Millennials were in a position to learn the value of financial
preparation, having grown up in the aftermath of a recession. The
qualities they have developed like budgeting discipline and a
realistic outlook on retirement may well pave the way toward their
financial future,” Sadowsky said.
TD Ameritrade’s 2016 Goal Planning Survey shows that people who
have a savings plan with specific goals are more likely to make
progress toward fulfilling their savings or investing targets. Not
sure how to get started? Investors of any age and experience level
can benefit from a free, comprehensive financial goal planning
session with an investment consultant at TD Ameritrade’s more than
100 branch locations. Visit tdameritrade.com/goalplanning.
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people
and education to help make investing and trading easier to
understand and do. Online or over the phone. In a branch or with an
independent RIA. First-timer or sophisticated trader. Our clients
want to take control, and we help them decide how — bringing Wall
Street to Main Street for more than 40 years. An official sponsor
of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD
Ameritrade has time and again been recognized as a leader in
investment services. Please visit TD Ameritrade’s newsroom or
www.amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org)
About Head Solutions GroupHead Solutions Group (U.S.)
Inc., is a leading market research partner for Financial Services
companies in North America. With offices in New York, Toronto and
Montreal, Head delivers the deep customer insights that increase
institutional knowledge and propel business action. TD Ameritrade
and Head Solutions Group are separate and unaffiliated firms and
are not responsible for each other’s services or policies.
About the 2016 Millennials and Money SurveyA 20-minute
online survey was conducted with 2,100 American adults (half
Boomers and half Millennials) by Head Solutions Group, between June
17 to June 21, 2016, on behalf of TD Ameritrade Holding
Corporation. The statistical margin of error for the total sample
of N=2,100 American adults within the target group is +/- 2.1
percent. This means that, in 19 out of 20 cases, survey results
will differ by no more than 2.1 percentage points in either
direction from what would have been obtained by the opinions of all
target group members in the U.S. Sample was drawn from major
regions in proportion to the U.S. Census. Generations used in this
report are defined according to the Pew Research Center.
Millennials (born 1981 to 1997, ages 18 to 35 in 2016) and Baby
Boomers (born 1946 to 1964, ages 52 to 70 in 2016).
Source: TD Ameritrade Holding Corporation
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TD Ameritrade Holding CorporationRebecca Niiya,
402-574-6652Communications & Public
Affairsrebecca.niiya@tdameritrade.com@TDAmeritradePR
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