A selection of the best millennial finance stories from the past fortnight. Why millennials are less likely to invest, why older millennials may never recover from the crash and how some US parents have told their live-in millennial son that enough is enough.
A new Federal Reserve Bank of St Louis study has suggested that millennials born in the 1980s may never get over the recession. While the economy was more robust by the time the 90s kids entered the workforce and older generations were likely to already own their own home, “older” millennials remain heavily indebted and are far less likely to own their own home than other groups. However, the survey does note that this age group has plenty of time to catch up.
This listicle in financial magazine Dealbreaker by its resident millennial looks at the truth behind the recent Gallup survey that suggested millennials and others under 35 are less likely to invest in the stockmarket. Reasons she cites include a lack of trust in the markets, short attention spans and the rise of cryptocurrencies.
Deloitte’s seventh annual millennial survey which surveys 10, 455 millennials across 36 countries, shows a drop in confidence in business among the millennials and Generation Z questioned. Less than half (48%) of millennials think businesses behave ethically and just 47% think business leaders are committed to socially beneficial initiatives.
Not strictly a finance story, but one worth mentioning. A couple in the US is trying to get their 30 year old son evicted. They say the man, who is unemployed, doesn’t pay rent or contribute around the house. The son is representing himself after the couple learned that they can’t evict him because he’s a family member. Pundits are attributing this to ‘failure to launch’ syndrome – where young people struggle to move forward into their adult lives. It’s down to a number of reasons, but poor self-esteem and lack of work ethic are among them.
Schroders, the fund management group, has set up a website aimed at millennials. This follows research that found 94% of young professionals want to improve their investment knowledge. The site, MoneyLens, will be edited by former Mail on Sunday journalist Vicki Owen and will feature articles written by millennials at the firm.
This week’s FT Money podcast is worth a listen as it features a number of financial apps reviewed by millennials at the FT. The likes of Moneybox, Emma and YNAB are put through their paces and by and large they don’t live up to expectations. It seems millennials are looking for functionality over and above the standard budgeting app rather than, to paraphrase one reviewer, solving problems that weren’t there to begin with.