The best millennial finance stories of the past fortnight. Find out why millennials in the U.K. have higher living costs but lower pay than their European counterparts. Plus, why is the number of millennial entrepreneurs growing?
A new report by the CFA Institute and Finra Investor Education has found that one key reason many millennials haven’t yet started investing is because they lack the knowledge and confidence to do so. The study also found that millennials often underestimate how many financial assets they actually need to make visiting a financial adviser worth their while: 20% thought there was no minimum amount, while 60% put the figure at around $10,000.
A Europe-wide study by fintech provider Revolut has shone some light on the financial difficulties U.K. millennials face. It found that, while millennials in the U.K. have the highest day-to-day living costs, their salaries are not even among the top ten highest in Europe. Those based in the U.K. spend more than anyone else on rent, transport and food bills.
This piece looks at the millennial generation and examines the extent to which they’ve been shaped by world events and to what extent they are shaping them. It points to the blame that is often heaped on this age group for “killing” everything from beer to golf.
Homeownership has overtaken other priorities for millennials, including starting a family, according to a study by Bank of America. The research found that 72% now consider homeownership a top priority and two in five are planning to buy in the next two years.
This piece looks at the growing interest millennials have in impact investing, so much so, according to the article, that we’re fast approaching the point where impact investing ceases to be a term, and simply becomes investing. This is driven by millennials’ desire to make a difference as well as their need for instant gratification. In any case, it’s part of a pattern of investing becoming more closely aligned with an individual’s values.
This piece cites a study carried out last year by America’s Small Business Development Centers that found 49% of millennials are considering starting a small business in the next three years. The study also found that 68% of this age group have already owned or been involved in setting up a company. It examines this trend and looks at the key drivers behind it, including the rise of social media marketing.
Millennials’ investment decisions are increasingly being shaped by social media and the FOMO (fear of missing out) associated with it, according to Fabrizio Campelli, Global Head of Wealth Management at Deutsche Bank. Speaking at the Bloomberg Invest Summit in London, he observed that through social media, millennials are both more connected to wider groups of people and more exposed to their peers’ activities than previous generations. This, in turn, influences many important aspects of their lives, including how they invest.