A round-up of the best millennial finance stories from the past fortnight. Find out why millennials felt ‘excitement’ at the recent market correction, why they lack confidence when haggling and how the pensions industry can harness this age group’s interest in social responsibility to boost savings.
A report released by campaign group ShareAction takes an in-depth look at how the pensions industry can better serve the needs of the millennial generation. It makes a number of recommendations, including encouraging auto-enrolment providers to embrace digital to boost member engagement and building socially responsible investment by getting a better grasp of what their members want to see their contributions invested in.
Millennials are beginning to see the impact on their finances and wellbeing of caring not just for children, but also for their ageing parents. In fact, this article in Time claims that nearly 25% of the 43 million caregivers in the US are millennials. As a result, they are increasingly pushing for better paid leave.
This regular feature in The Guardian looks at the spending habits of individual millennials. This week, 24 year old Rosie Burns is in the hot seat. She’s on track to save £50,000 by 2020, but, as she readily admits, she’s the very enviable position of living at home and has a relatively high paying job for a recent graduate.
Research by cars.com has found that, when it comes to haggling, millennials are out of their comfort zone. Seven in ten millennials say they avoid haggling on big-ticket items like houses or cars, while one in four would opt to have their parents around for the negotiations. There’s a gender gap too, with millennial men twice as likely as their female counterparts to be comfortable haggling (although this is from a low base). Given that haggling is a useful way of avoiding overpaying, getting millennials to a point where they feel comfortable doing it could be an effective way of boosting their money management skills.
This piece interviews Financial Diet blog founder Chelsea Fagan on how splurging on credit cards motivated her to start writing for millennial women on managing their finances. She gives some useful money management tips for millennials.
Millennials took the recent market correction in their stride, according to a report by Bankrate. While many older investors reported being spooked by February’s turmoil, nearly one in five millennial investors saw it as an opportunity to boost their portfolios by picking up some bargains.
However, the survey did also find that millennials were less likely to have accounts set up with investment firms, so it’s not clear how other, perhaps less sophisticated, millennial investors reacted to the news.
This piece looks at how financial advisers can incorporate “wellness” into financial planning to better engage with millennial investors. According to UBS adviser Marielle Schurig, who works with high net worth individuals, helping this group to understand the intrinsic link between their finances and their health can have a real impact.
And finally, another report is out this week, this time by Aviva, that looks at how millennials are faring financially. It studies the spending, saving and investing habits, among other things, of millennials and dispels some well-entrenched myths about how this age group manages its finances.