A recent study by TD Bank found that millennials are better with their money than Gen Xers and baby boomers. Far from being pampered and entitled, millennials are aware of the importance of good financial health. They think about the future more. They’re more frugal. And they’re saving for retirement.
While millennials are seeking meaningful and enjoyable work, employers should also consider the value of providing programs that offer long-term benefits and security.
1. They’re all about responsibility
Millennials only spend $26,000 annually, substantially less than their baby boomer and Gen X counterparts. For example, they go out to eat more often but spend less on dining than other generations. They also consider debt to be their number one concern and regularly worry about their financial future, according to the TD Bank report.
They also have a strong interest in social responsibility. A Nielsen Company survey found that 75% of millennials gave money to charitable causes. Also, millennials are more likely than baby boomers to say that taking care of an elderly parent is their responsibility.
2. They’re focused on retirement
Surveys have shown that millennials consider benefit packages before accepting a job. They’ve seen their boomer parents have to work well past age 65 and don’t want to end up in the same boat.
Not to mention the dire predictions of what the future will be like. USA Today estimates that because of inflation and a decrease in social security benefits, millennials will need $1.8 million to retire. This means they’ll need to save $2,000 per month and earn 5% interest on those savings in order to retire comfortably.
3. They’re skeptical of credit
Perhaps because of mounting student loans, millennials are wearier of credit than other generations. A majority of millennials reported in a survey that they prefer to pay cash. Hard money is preferred even over apps like PayPal.
The recession has hurt credit cards in general, and millennials are no exception. In fact, 63% said they don’t have a single credit card, according to bankrate.com. This generation prefers to deal in real money to avoid steep interest payments.
4. They’re interested in education
Millennials are the most educated generation in history with 47% holding post-secondary degrees, according to a Council of Economic Advisers report. This is less than surprising, considering the ever-higher levels of education needed for even entry-level jobs.
However, millennials view education as an investment. They know that additional education will advance their career and help them in the future. Our Employee Engagement Report found that millennials crave professional development — and employers often don’t provide it.
Millennials have legitimate concerns about what the future holds. They know that the career paths and social safety nets that their parents relied on are no longer sure things. They need to be prepared for anything and are more likely to work with companies that understand where they’re coming from.