Millennials are known as the more savvy generation, given the technological age they grew up in, and this is helping them find innovative ways to manage their financial expenditures. However, their digital savviness and social media use may also be deterring them from creating a solid financial future.
The Allianz Generations Ahead Study* revealed the following trends with millennials and their digital activity:
- 88% of millennials believe social media creates more of a tendency to compare one’s wealth/lifestyle with others.
- 55% reported experiencing a fear of missing out (FOMO) and 57% spent money they hadn’t planned to because of what they saw on their social media feeds.
- A similar amount (50%) also claim they might spend more money going out than they do on rent or mortgage.
But there’s more to the story for this tech-active age group. Seventy percent also report using online tools to help manage their money and track their spending, and 66% attest to using the convenience of technology to set up multiple accounts to help set aside money for different purposes – and many of them are interested in taking a non-traditional approach to their life path and retirement by rethinking traditional life stages.
So how can you help your millennial clients stay on track to building financial security and financing the experiences along the way? Since many are already demonstrating goal-based behaviors by using separate accounts to fund different needs, they may also benefit from working with a financial professional who can help them identify long-term financial goals and set up a strategy that will help achieve them.
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* The Allianz Generations Ahead Study was conducted by Larson Research + Strategy via online survey in May, 2017 with 3,006 U.S. adults ages 20-70 with a minimum household income of $30K+ and was commissioned by Allianz Life Insurance Company of North America.