Millennials and Finance - US - June 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Themes
Millennials defy easy categorization
Figure 1: Millennial breakdown by key demographics, April 2019
Millennials are family-oriented
Figure 2: View of Millennial parents toward children and finances, April 2019
Debt is a burden and a stressor
Figure 3: Attitudes toward debt, April 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
Millennials are the largest consumer generation
Figure 4: Millennial breakdown by key demographics, April 2019
The Millennial generation is not a monolith
Figure 5: Millennial breakdown by key demographics, April 2019
Millennials are the most diverse generation yet
Figure 6: Generation composition, race and Hispanic origin, 2018
MARKET FACTORS 
Non-housing consumer debt exceeds $4 trillion for first time in history
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
Figure 9: Educational attainment of 25-to-37 year olds (%), by generation, 1968-2018
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
Figure 11: Millennial breakdown by employment status and gender, April 2019
Women are waiting longer to have children
Figure 12: Average age of mother at first birth, 1990-17
Homeownership levels still impacted by recession, but Millennials are hopeful
Figure 13: Homeownership rate for the United States – Percent, not seasonally adjusted, Jan 2000-Jan 2019
KEY TRENDS – WHAT YOU NEED TO KNOW 
Millennials pose a conundrum for marketers
Budgeting and taking tough love are not strong suits
Digital future
TRENDS AFFECTING MILLENNIALS
Millennials are Redefining Adulthood
Switching Off: what’s good for the psyche is bad for the marketer
Millennials are philanthropic, care about Moral Brands
Figure 14: Brand representation of values, top factors, March 2019
Figure 15: Top factors of trust, October 2018
SORE SUBJECTS
“Don’t ask me about my budget…”
Figure 16: Millennial budget habits, by region, April 2019
“…or tell me how to spend my money”
Figure 17: Chase Tweet, April 29, 2019
“I don’t trust the man”
Figure 18: Millennial attitudes toward finances, various topics, by gender, April 2019
WHAT’S NEW AND WHAT’S NEXT?
Millennial mindset may undercut traditional banking fixtures
Mobile wallet inflection point may be around the corner
Figure 19: Mobile wallet usage, by gender and age, April 2019
Financial products reflect desire for sustainability
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Millennials are doing it for their families
Figure 20: Millennial incentives for making money, April 2019
Figure 21: Bank of America, eNewsletter, January 2019
Paying bills and saving for emergencies top the list
Figure 22: Millennial financial priorities, April 2019
FINANCIAL HABITS
Budgeting is not a priority – with a surprising regional twist
Figure 23: Millennial budget habits, by region, April 2019
Better credit is correlated with better habits
Figure 24: Tendency to save/spend, by credit score, April 2019
Rural consumers less likely to save, more likely to spend
Figure 25: Tendency to save/spend, by area, April 2019
Nearly 1 in 5 Millennial men use a mobile wallet
Figure 26: Mobile wallet usage, by gender and age, April 2019
Figure 27: M&T Bank, loyalty email, December 2018
FINANCIAL ATTITUDES
Millennials value experiences over things
Figure 28: Attitudes toward money, by level of education, April 2019
Millennial men are significantly more financially confident
Figure 29: Gender disparities in financial attitudes, April 2019
Most Millennials think they’ve had it tougher than their parents
Figure 30: Millennial exceptionalism, April 2019
Millennials averse to investing and large corporations, especially for Hispanics
Figure 31: Millennial attitudes toward corporate finance, by race and ethnicity, April 2019
FINANCIAL SATISFACTION
In most financial areas, Millennial satisfaction barely exceeds 50%
Figure 32: Financial satisfaction, aspects with highest satisfaction, April 2019
On several key areas, Millennials are nearly as dissatisfied as satisfied…
Figure 33: Satisfaction with key financial metrics, April 2019
Figure 34: Citibank, Cross-sell offer, May 2019
…and the gap is tighter among women
Figure 35: Satisfaction with key financial metrics among women, April 2019
DEBT
Debt overview – Millennials are stressed, and trying various options
Figure 36: Attitudes toward debt, April 2019
Debt is a serious stressor, and education is a factor
Figure 37: Attitudes toward debt, by education level, April 2019
“Keeping up with the Joneses” is a problem for some Millennial men and Hispanics
Figure 38: Attitudes toward debt, by gender and Hispanic origin, April 2019
HOMEOWNERSHIP AND CHILDREN
Almost half of Millennial homeowners see their property as a good investment
Figure 39: Satisfaction with current home purchase, by region, April 2019
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
Figure 41: Millennial attitudes toward homeownership, April 2019
Children are stressful, costly
Figure 42: View of Millennial parents toward children and finances, April 2019
Millennial men have been waiting to become fathers for financial reasons
Figure 43: View of Millennial parents toward children and finances, by gender, April 2019
RETIREMENT
The prospect of retirement is more stressful for Millennial women
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)
Figure 45: Financial behavior of Millennial parents, April 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations