We know each generation has its own preferences and challenges when it comes to financial matters. With Millennials, we're seeing key differences even within the same generation, and as a result, our 2016 Financial Mindset™ Study splits the Millennial splits population into two groups—Emerging Millennials (ages 20-28) and Established Millennials (ages 29-37). Our unique view helps employers further understand what drives this key group and how to support them in achieving their financial goals. After all, Millennials have claimed the largest generational share of the U.S. workforce for some time, and by 2020 they are expected to make up 50% of the workforce.
The 2016 study shows a widening gap between perception and reality across all generations. Employees continue to express confidence, yet we see an even greater divide than last year between their perceived understanding of money and how much they actually know, especially among Millennials.
Digging a little deeper, 76% of Millennials see themselves as financially savvy. But when that claim was put to the test, 68% of Emerging Millennials couldn't answer 4 out of 5 basic financial questions. Established Millennials did slightly better, though 57% still missed the mark. Curious about the types of questions? Take the quiz.
When it comes to saving, Millennials recognize having an emergency fund and retirement income as priorities. However, only 78% of Established and 56% of Emerging Millennials are saving in their employer-sponsored plan. Why is that?
Not only are Millennials more likely than other generations to expect employer support, but 7 out of 10 would be willing to share personal financial information with their employer in exchange for personalized financial guidance and planning.
Download our 2016 Financial Mindset™ Study to learn more about how you can reach Millennials and other generations.