E*TRADE Study Reveals That Financial Worry is More Pronounced Among Millennials Than Any Other Generation
September 26 2017 - 4:05PM
Business Wire
As Millennial investors forge their financial
future, more than two thirds surveyed feel they could be doing
better financially
E*TRADE Financial Corporation (NASDAQ: ETFC) today announced
results from the most recent wave of StreetWise, E*TRADE’s
quarterly tracking study of experienced investors. Results underpin
the frustration many Millennials feel as they build their financial
foundation. Top insights include:
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- They aren’t satisfied
financially. Despite their current income and savings, more
than two thirds (69 percent) of Millennials feel they could be
doing better.
- It’s affecting their
relationships. More than half (53 percent) of Millennials feel
that worrying about finances puts a strain on their relationships
with friends and family.
- And their health. Half (50
percent) of Millennials believe worrying about finances negatively
affects their well-being.
- Social media and TV may be making it
worse. Almost three out of five Millennials (59 percent) report
that images of exaggerated wealth on social media and television
make them feel less successful.
“Millennials arguably have not had the easiest time getting
their financial footing—many came into the workforce during a weak
job market and may be straddled with high levels of student debt,”
said Mike Loewengart, VP, Investment Strategy at E*TRADE Financial.
“Compounding these obstacles is the influence of social media,
which seems to be amplifying anxiety. Exaggerated images of luxury
spending and status often displayed on social sites run counter to
the principles of sound wealth building. One would be hard-pressed
to find a social media star promoting the merits of getting their
employer’s 401(k) match, the purpose of dollar cost averaging, or
the advantages of enrolling in an automated investing plan. But
these types of disciplined actions are exactly what is needed to
help create a nest egg.”
Mr. Loewengart offered a few steps young investors may consider
as they build their financial foundation:
- Define your goals. Ask yourself,
what do you want to save for? How comfortable are you with risk?
When do you need the money? This will all help define your
investing approach.
- Try an investing tool. Today
there are a great variety of digital tools and resources to help
plan for some of life’s biggest financial decisions, like buying a
house or saving for retirement.
- Contribute consistently. One of
the biggest factors to reaching your goals—hands down—is being
disciplined about contributions. Try to avoid emotional investing
pitfalls—like timing the market—by focusing on the long term and
sticking to your plan. And the earlier investors start saving, the
better, as time and compound interest can help your portfolio grow
exponentially.
- Keep your eyes on the
prize. Building and maintaining a well-diversified,
risk-appropriate portfolio for the long term is one of the most
important ways to stay on track to meeting your goals.
E*TRADE aims to enhance the financial independence of traders
and investors through a powerful digital offering and professional
guidance. To learn more about E*TRADE’s trading and investing
platforms and tools, visit etrade.com.
For useful trading and investing insights from E*TRADE, follow
the company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from July 1 to July 10 of
2017 among an online U.S. sample of 959 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.16 percent at the
95 percent confidence level. It was fielded and administered by
Research Now. The panel is broken into thirds of active (trade more
than once a week), swing (trade less than once a week but more than
once a month), and passive (trade less than once a month). The
panel is 60 percent male and 40 percent female with an even
distribution across online brokerages, geographic regions, and age
bands.
Referenced Data
Despite my current income and savings, I feel I could be
doing better. AGE TOTAL
25–34 35–54 55+ Agree (Top 2
Box) 65% 69% 70% 57% Very much
agree 17% 24% 21% 8% Somewhat agree 48% 45% 49% 49% Somewhat
disagree 26% 24% 25% 30% Very much disagree 9% 7% 5% 13%
Disagree (Bottom 2 Box) 35% 31%
30% 43%
Worrying about finances
negatively affects my relationships. AGE TOTAL
25–34 35–54 55+ Agree (Top 2 Box)
37% 53% 38% 19% Very much agree 9% 13%
7% 4% Somewhat agree 28% 41% 31% 15% Somewhat disagree 31% 27% 32%
34% Very much disagree 32% 20% 30% 47%
Disagree (Bottom 2
Box) 63% 47% 62%
81%
Worrying about finances negatively affects my
health. AGE TOTAL 25–34 35–54
55+ Agree (Top 2 Box) 36% 50%
38% 18% Very much agree 8% 14% 5% 4% Somewhat agree
28% 36% 33% 15% Somewhat disagree 32% 31% 33% 33% Very much
disagree 32% 20% 30% 49%
Disagree (Bottom 2 Box)
64% 50% 62% 82%
Images of exaggerated wealth seen on social media and television
makes me feel less successful. AGE TOTAL
25–34 35–54 55+ Agree (Top 2 Box)
43% 59% 44% 25% Very much agree 11% 16%
11% 5% Somewhat agree 32% 43% 32% 21% Somewhat disagree 27% 24% 29%
29% Very much disagree 30% 17% 27% 46%
Disagree (Bottom 2
Box) 57% 41% 56%
75%
“Millennials” defined as age 25–34 // “Gen X” defined as age
35–54 // “Baby Boomers” defined as age 55+
About E*TRADE Financial and Important Notices
E*TRADE Financial and its subsidiaries provide financial
services, including brokerage and banking products, and services to
retail customers. Securities products and services are offered by
E*TRADE Securities LLC (Member FINRA/SIPC). Commodity futures
products and services are offered by E*TRADE Futures LLC (Member
NFA). Managed Account Solutions are offered through E*TRADE Capital
Management, LLC, a Registered Investment Adviser. Bank products and
services are offered by E*TRADE Bank, a Federal savings bank,
Member FDIC, or its subsidiaries. More information is available at
www.etrade.com.
The information provided herein is for general informational
purposes only and should not be considered investment advice. Past
performance does not guarantee future results.
Dollar cost averaging does not ensure a profit nor protect
against loss in declining markets.
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
ETFC-G
E*TRADE Financial Corporation and Research Now are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages Research Now to program, field, and tabulate the study.
About Research Now
Research Now Group, Inc. is a global leader in digital research
data for better insights and business decisions. The company
provides world-class research data solutions that enable better
decisions and better results for its 3,000 market research,
consulting, media, and corporate clients through access to over 11
million deeply profiled business professionals and consumers in
more than 40 countries. Research Now operates globally with
locations in the Americas, Europe, the Middle East, and
Asia-Pacific, and is recognized as the quality, scale, and customer
satisfaction leader in the market research industry. For more
information, please go to www.researchnow.com.
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