THOSE MONEY- SAVVY MILLENNIALS
Turns out 18- 34 group saves, invests and seeks fi nancial advice
It turns out that those millennial brats — the ones branded by some of my baby boomer peers as lazy and/ or entitled — may be better money managers than Mom and Dad.
This is perhaps the most intriguing insight to emerge from a survey of generational differences in money- managing habits conducted by RetailMeNot. ca, an online digital coupon website. It probed such issues as how prone are different demographic groups to seek out financial advice, how do they prefer to get such guidance, and how will they likely spend windfalls such as income tax refunds.
On this last question — a key one given that actions speak louder than words — 56 per cent of Canadian millennials ( aged 18 to 34) say they will save and invest whatever money they get back from the Canada Revenue Agency this year, compared with just 40 per cent of those aged 35 to 54, and 41 per cent of those over 55.
These percentages were high enough to make savings the top choice, by a wide margin, for all age groups, although aging boomers and those in the middle who are in or near their peak working years were more attracted to a wide range of more frivolous options — travel, electronics, etc.
And, at the other end of the spectrum, 9- 10 per cent of all age groups said their refunds would be spent on food — a choice that suggests to me that either they’re expecting only enough to treat themselves to a nice dinner, or they need the refund money very badly.
But if most millennials plan to salt away their tax refunds, this must mean most believe they have some disposable income to spare.
And there are other signs
The short story is, boomers very likely will be leaving the reins in better hands than some of us think.
that this generation is determined — possibly thanks to negative examples at home, rather than positive ones — to manage their money carefully. For example, those aged 18 to 35 are more likely to create a personal budget ( 71 per cent versus 58 per cent of those aged 35 to 52, and 44 per cent for the oldest cohort).
They are also at least 50 per cent more likely than older age groups to make specific efforts to learn more about their finances or to seek financial advice. And they’re more apt to seek help from family, a walk- in tax consultancy or a computer program to do their income tax, but they’re less likely than older folks to hire a n independent accountant.
Finally — and this no doubt explains RetailMeNot’s interest in the issue — today’s students and young workers are far more likely than older Canadians to seek out discount coupons before they make purchases. The prospect of saving a little money this way appeals to 42 per cent of 18- 35- year- olds, 31 per cent of 35- 54- year- olds and just 16 per cent of those who are 55- plus. Which skewers another stereotype — that of the old girl holding up the checkout line as she rummages through her purse for a 10- cents- off coupon.
But it’s the poking of holes in the other stereotype — the one that sees millennials as lacking the focus and good sense that will be needed to take charge of the economy when their elders step aside — that’s more refreshing to see.
The short story is, boomers very likely will be leaving the reins in better hands than some of us think. And, while my generation’s record of economic management is far from perfect, it’s certainly better than a lot of our parents’ generation would have predicted when they were castigating most of us as a bunch of dope- smoking, free- loving hippies.