Table of Contents
Executive Summary
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- Overview
- Themes
- Millennials defy easy categorization
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- Figure 1: Millennial breakdown by key demographics, April 2019
- Millennials are family-oriented
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- Figure 2: View of Millennial parents toward children and finances, April 2019
- Debt is a burden and a stressor
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- Figure 3: Attitudes toward debt, April 2019
- What it means
The Market – What You Need to Know
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- What is a Millennial, anyway?
- Millennials are more diverse than any previous generation
- Consumer debt keeps on soaring
- Education levels are at an all-time high, with diminishing returns
- Children and homeownership often take the back seat
Millennial Demographics
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- Millennials are the largest consumer generation
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- Figure 4: Millennial breakdown by key demographics, April 2019
- The Millennial generation is not a monolith
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- Figure 5: Millennial breakdown by key demographics, April 2019
- Millennials are the most diverse generation yet
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- Figure 6: Generation composition, race and Hispanic origin, 2018
Market Factors
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- Non-housing consumer debt exceeds $4 trillion for first time in history
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- Figure 7: Consumer debt balance, non-housing debt, Q4 2003-Q4 2018
- Figure 8: How extra money is spent – Paying off debt, by age, February 2019
- Education and income levels are inextricably linked
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- Figure 9: Educational attainment of 25-to-37 year olds (%), by generation, 1968-2018
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- Figure 10: Median adjusted household income of households headed by 25-to-37 year olds, in 2017 dollars, by generation
- Millennial unemployment quite high, especially among women
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- Figure 11: Millennial breakdown by employment status and gender, April 2019
- Women are waiting longer to have children
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- Figure 12: Average age of mother at first birth, 1990-17
- Homeownership levels still impacted by recession, but Millennials are hopeful
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- Figure 13: Homeownership rate for the United States – Percent, not seasonally adjusted, Jan 2000-Jan 2019
Key Trends – What You Need to Know
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- Millennials pose a conundrum for marketers
- Budgeting and taking tough love are not strong suits
- Digital future
Trends Affecting Millennials
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- Millennials are Redefining Adulthood
- Switching Off: what’s good for the psyche is bad for the marketer
- Millennials are philanthropic, care about Moral Brands
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- Figure 14: Brand representation of values, top factors, March 2019
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- Figure 15: Top factors of trust, October 2018
Sore Subjects
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- “Don’t ask me about my budget…”
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- Figure 16: Millennial budget habits, by region, April 2019
- “…or tell me how to spend my money”
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- Figure 17: Chase Tweet, April 29, 2019
- “I don’t trust the man”
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- Figure 18: Millennial attitudes toward finances, various topics, by gender, April 2019
What’s New and What’s Next?
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- Millennial mindset may undercut traditional banking fixtures
- Mobile wallet inflection point may be around the corner
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- Figure 19: Mobile wallet usage, by gender and age, April 2019
- Financial products reflect desire for sustainability
The Consumer – What You Need to Know
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- Family is the focus
- Budget deficit
- Young Millennial men are using mobile wallets
- Debt is a serious burden
- Women are stressed about retirement (men aren’t much better)
Financial Incentives and Priorities
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- Millennials are doing it for their families
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- Figure 20: Millennial incentives for making money, April 2019
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- Figure 21: Bank of America, eNewsletter, January 2019
- Paying bills and saving for emergencies top the list
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- Figure 22: Millennial financial priorities, April 2019
Financial Habits
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- Budgeting is not a priority – with a surprising regional twist
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- Figure 23: Millennial budget habits, by region, April 2019
- Better credit is correlated with better habits
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- Figure 24: Tendency to save/spend, by credit score, April 2019
- Rural consumers less likely to save, more likely to spend
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- Figure 25: Tendency to save/spend, by area, April 2019
- Nearly 1 in 5 Millennial men use a mobile wallet
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- Figure 26: Mobile wallet usage, by gender and age, April 2019
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- Figure 27: M&T Bank, loyalty email, December 2018
Financial Attitudes
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- Millennials value experiences over things
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- Figure 28: Attitudes toward money, by level of education, April 2019
- Millennial men are significantly more financially confident
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- Figure 29: Gender disparities in financial attitudes, April 2019
- Most Millennials think they’ve had it tougher than their parents
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- Figure 30: Millennial exceptionalism, April 2019
- Millennials averse to investing and large corporations, especially for Hispanics
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- Figure 31: Millennial attitudes toward corporate finance, by race and ethnicity, April 2019
Financial Satisfaction
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- In most financial areas, Millennial satisfaction barely exceeds 50%
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- Figure 32: Financial satisfaction, aspects with highest satisfaction, April 2019
- On several key areas, Millennials are nearly as dissatisfied as satisfied…
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- Figure 33: Satisfaction with key financial metrics, April 2019
- Figure 34: Citibank, Cross-sell offer, May 2019
- …and the gap is tighter among women
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- Figure 35: Satisfaction with key financial metrics among women, April 2019
Debt
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- Debt overview – Millennials are stressed, and trying various options
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- Figure 36: Attitudes toward debt, April 2019
- Debt is a serious stressor, and education is a factor
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- Figure 37: Attitudes toward debt, by education level, April 2019
- “Keeping up with the Joneses” is a problem for some Millennial men and Hispanics
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- Figure 38: Attitudes toward debt, by gender and Hispanic origin, April 2019
Homeownership and Children
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- Almost half of Millennial homeowners see their property as a good investment
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- Figure 39: Satisfaction with current home purchase, by region, April 2019
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- Figure 40: Satisfaction with current home purchase, by region, April 2019
- Nearly one third of Millennials think buying a home was easier for their parents
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- Figure 41: Millennial attitudes toward homeownership, April 2019
- Children are stressful, costly
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- Figure 42: View of Millennial parents toward children and finances, April 2019
- Millennial men have been waiting to become fathers for financial reasons
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- Figure 43: View of Millennial parents toward children and finances, by gender, April 2019
Retirement
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- The prospect of retirement is more stressful for Millennial women
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- Figure 44: Millennial attitudes toward retirement, by gender, April 2019
- Parents more likely to have met with advisor, but also to have prematurely withdrawn from 401(k)
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- Figure 45: Financial behavior of Millennial parents, April 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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