The Millennial Generation may be helping drive much of the new consumer technology on the market, but according to a new survey, they aren't very good at managing their money.
The TD Bank Financial Education Survey focused on the top financial stresses for older millennials, ages 24-34, and revealed that 22 percent of millennials and 17 percent of Hispanic millennials feel they are under extreme financial stress. Additionally, 55 percent of millennials and 60 percent of Hispanic millennials feel they are able to manage their finances, but are having difficulty finding financial happiness. The nationwide survey polled more than 1,000 millennials, including 150 Hispanic millennials, to determine their financial preparedness for major life events, such as going to college and purchasing a home.
"Many factors can contribute to millennials' financial stress," said Nandita Bakhshi, Head of Consumer Bank, TD Bank. "Major life events such as getting married or starting a new job require solid understanding of personal finance and if millennials are telling us they aren't prepared for this, we need to help find solutions."
Millennials Wish They Were More Financially Prepared
On average, two thirds of all millennials wish they had been more financially prepared before experiencing a major life event. For many of these events, millennials did not prepare at all for the financial implications. Millennials said they were least ready for:
- Going to college (31 percent/34 percent Hispanic not prepared) Having a child (27 percent/26 percent Hispanic not prepared) Starting a new job (21 percent/23 percent Hispanic not prepared)
Millennials top stressors were:
- Paying bills (45 percent/51 percent Hispanic) Lack of funds/poor financial situation (33 percent/31 percent Hispanic) Cost of living (7 percent/7 percent Hispanic)
Who Do Millennials Look To For Advice?
The TD Bank survey found that one third of all millennials turn to their family and friends most often when seeking financial advice around a major life event and, on average, only one eighth said they obtain financial advice from a bank. However, 38 percent of general market millennials did turn to their bank for advice when buying a home while only 17 percent of Hispanic millennials did.
Millennials obtain information about financial products most often from:
- Family and friends (65 percent/61 percent Hispanic) Research on the internet (48 percent/55 percent Hispanic) Formal financial education (33 percent/29 percent Hispanic)
"When it comes to taking a formal financial education class, about one quarter of all millennials feel they didn't need financial education and don't have the time," said Nandita. "Millennials need to be proactive in finding education that fits their needs so they can be more prepared for the events they will experience throughout their lives."
Full survey results, including demographic and gender findings, can be found at https://mediaroom.tdbank.com/finedsurvey.