The Millennial Generation are those often believed to have had it all - a relatively ... NURTURE. Millennials' money hab
MILLENNIAL ME AND MY MONEY The financial triumphs and tribulations of the tech generation
The Millennial Generation are those often believed to have had it all a relatively stable economy, rapidly-accelerating access to technology unimaginable to previous generations, historically-low interest rates and low levels of unemployment. At times, it’s probably fair to say that Millennials have gotten a hard rap from society, often assumed to be irresponsible, entitled and to have had a pretty easy ride versus the generations that came before them.
And yet, when it comes to their finances and their management of money, Millennials seem to deserve more credit (excuse the pun) than they may have been getting in society….
Millennials’ money habits appear to have been shaped to no small extent in the home. And in the case of money management, it seems that in some cases Mummy might just know best…
NATURE VS NURTURE
£9,842 vs. £5,282 Millennials who enjoy a positive parental influence around money have twice the level of savings…
…most (63%) say their parents or guardians have had a positive influence on their money management habits
£2,322 vs. £5,139 …and half the amount of debt as those with negative parental influence.
SPENDERS AND SAVERS
SAVERS
Half of Millennials consider themselves to be ‘savers’ rather than ‘spenders,’ and those who consider themselves to be savers have an impressive amount put away for the future.
16% save more than three quarters of their disposable income each month; 23% save half £2,162 average outstanding debt (excluding mortgages and student loans)
49% consider themselves to be ‘savers’
£13,109 average savings
SPENDERS
30% save less than a quarter ; 41% save nothing £4,862.94 average outstanding debt (excluding mortgages and student loans) 41% save none of their disposable income each month
25% of Millennials consider themselves to be ‘spenders’
£3,483 average savings
SPENDERS VS SAVERS
3 times more likely than savers to have run out of money before payday (48%:14%)
Five times more likely to have missed an agreed credit repayment (20%:4%)
And for many who identify more as spenders, they could well be falling behind their peers.
Millennial spenders are…
Four times as likely to have defaulted on a credit account (11%:3%)
Three times more likely to have been refused credit (23%:8%)
Seven times more likely to have taken out a short-term loan (14%:2%)
S AV I NG FOR A R A I N Y D AY Lessons learnt from their parents and recent economic challenges may have played their part in helping Millennials understand the importance of saving for a rainy day.
They have an average of £8,384 in savings
Three in 10 (30%) save either a quarter or half of their monthly disposable income 21% save less than a quarter, but more than nothing each month
The average Millennial has £2,931 outstanding debt (excluding mortgages and student loans)
TREATING THEMSELVES
Eating out (54%)
While most are saving an impressive amount of their disposable income each month, Millennials still like to enjoy the finer things in life. They’re most likely to spend their disposable income on:
Socialising (51%)
Clothes/Fashion (35%)
THE‘TECH’ GENERATION? Contrary to many trends when it comes to the role of technology in Millennials’ lives overall - it appears that technology isn’t playing as important a role as we might have expected when it comes to managing their money.
Technology plays an important role (45%)
Technology doesn’t play an important role (46%)
Of Millennials who do use apps in their money management, they use them for:
43%
12%
9%
5%
3%
Day to Day Banking
Managing Utility Bills
Budgeting
Switching/Comparing Products
Transferring Money Abroad
F I N A N C I A L P I T F A L L S Effective budgeting appears to be a skill yet to be mastered by some Millennials, with many falling into the same all-too-familiar financial pitfalls of earlier generations*
25% have run out of money before payday
21% have gone into an unplanned overdraft
9% have missed an agreed credit repayment
*Comparative data available for Generation X
12% have been refused credit
46% have never checked their credit report
MILLENIALS AS CONSUMERS
Only 56% are willing to switch service providers to a company that offered them something extra
While in many ways Millennials appear to be doing better than older generations, the lack of enthusiasm to seek out the best deals for their financial situation could see many missing out. If the ‘tech generation’ embraces the power of their pound to make a step-change in becoming a generation of more conscious consumers, this could set future generations up for prosperity.
A quarter (23%) say they are not willing to switch, regardless of what they are offered or how much they could save
DRIVERS AND DETRACTORS What would encourage them to switch provider?
47%
37%
46%
44%
If the new provider If I was offered If the new provider If the new provider offered cheaper access to rewards had better offered a cash services and privileges (e.g. products/ services incentive cashback, loyalty (e.g. better points, etc.) overdraft, interest rates, etc.)
What’s deterring them from switching?
47%
46%
If I thought it was too much effort to switch
If there was not enough of a difference in the product/ service provided
51%
39%
If the new provider If I was worried that had a poor there would be reputation for disruption during customer service the switching process (e.g. missed payments)
THE FUTURE’S BRIGHT
While Millennials have high expectations and bold aspirations, they want to earn and have more to spend to allow them to succeed. But it appears they’re willing to work hard and save to get there. The future’s bright in the eyes of many Millennials.
Millennials’ perception of their financial future:
A third said career building is their biggest personal goal for the next 2 years
33% 19% 49%
Net: Optimistic
Net: Pessimistic
METHODOLOGY All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2028 adults aged 18-34 (Millennials) and 2047 adults aged 35-55 (Generation X). Fieldwork was undertaken between 17th – 28th December 2015. The survey was carried out online. The figures have been weighted and are representative of 18-34 year old GB adults and 35-55 year old GB adults.
FOR FURTHER INFORMATION, PLEASE CONTACT THE TEAM AT EXPERIAN: JOANNE LEAHY T: +44 (0) 203 04 24 089 | M: +44 (0) 779 189 4469 | E:
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JILL O’CONNOR T: +44 (0) 203 04 24 870 | M: +44 (0) 796 490 3729 | E:
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PRIYA SAHIB T: +44 (0) 203 04 24 573 | M: +44 (0) 781 649 1152 | E:
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