Report: Majority of millennials are on top of their finances
April 18 2018 - 8:55AM
Most young adults in America manage their money closely, according
to a newly released paper by Navient for Financial Literacy Month.
The special report highlights research from Navient's national
Money Under 35 study on money management and finds that 3 in 4
young adults, ages 22 to 35, always know how much is in their bank
account and check their finances before making a purchase.
“The importance of proactive financial management remains
paramount for young adults, whether it’s done online or on paper,”
said Julie Wilson, head of research for Navient. “Our findings
suggest young adults who track their finances and keep a budget are
on the road to superior financial health.”
Key findings from Navient’s special report include:
- Young adults who rate their financial health as “very
good” use proactive techniques to manage their finances.
They are more likely to balance a checkbook, use computer software
or other programs than those who rate their financial health as
“poor.”
- More young adults manage their money online.
Fifty-two percent of young adults use their bank’s website or app
to keep track of their finances, a 30 percent increase in
popularity of online tools from 2015 and 2016. One in 5 young
adults still balance a checkbook by hand, but that practice has
declined from 2 in 5 from prior years.
- Computer-based tools are more popular among young
adults with a college degree. Fifty-nine percent of degree
holders use their bank’s website or app to manage their money,
compared to 47 percent of non-degree holders. Degree holders are
also twice as likely to use a spreadsheet than non-degree holders
(29% vs 14%).
- Retirement savings accounts are more prevalent for
young adults with at least a bachelor's degree.
Forty-eight percent of bachelor's or advanced degree holders use a
dedicated retirement fund compared to 25 percent of non-degree
holders.
- Young adults are choosing convenience to pay their
bills. Fifty-one percent of young adults use autopay to
schedule recurring bill payments.
- Most young adults know the interest rates on their
consumer loans, but awareness is lower for student loans.
Many young adults know the interest rates for their mortgages (68%)
and auto loans (60%), compared to only 45 percent for student
loans.
Navient's Money Under 35 study, conducted in partnership with
global research company Ipsos, is based on a survey of more than
3,000 adults aged 22 to 35. The special report and complete Money
Under 35 study is available at Navient.com/MoneyUnder35.
Connect with @Navient on Facebook, Twitter, LinkedIn
and Medium.
About NavientNavient (Nasdaq:NAVI) is a leading
provider of asset management and business processing solutions for
education, healthcare and government clients at the federal, state
and local levels. The company helps its clients and millions of
Americans achieve financial success through services and support.
Headquartered in Wilmington, Delaware, Navient employs team members
in western New York, northeastern Pennsylvania, Indiana, Tennessee,
Texas, Virginia, Wisconsin and other locations. Learn more at
navient.com.
Contact:
Media: Nikki Lavoie, 302-283-4057, nikki.lavoie@navient.com
Customers: 888-272-5543
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