We’ve all heard the stereotypes about millennials. They are often viewed by previous generations as lazy and apathetic, especially when it comes to their finances. Though I obviously can’t speak for all millennials, I’ve found the latter stereotype to be true in many cases. But as an entrepreneur and finance professional, I never judge a book by its cover. After working with several millennials (both clients and my own employees), I realized that laziness is usually not the reason most millennials are apathetic about their finances.
Instead, it’s the various obstacles millennials have faced since entering adulthood and how their internet-driven world has transformed their perception of things. If finance professionals had a better understanding of how millennials grew up, they might know how to bestow advice that directly accommodates their unique challenges.
Here are three reasons millennials seem apathetic about their finances:
1. Stable, well-paying jobs are harder to find.
A great deal of online finance content is centered around retirement. It tells readers to start saving and investing as early as possible while making sure they manage their employer retirement plan correctly. Well, many millennials don’t believe they are in the position to do these things because they lack the required resources.
In the past, it wasn’t difficult for young adults to find jobs at large, established businesses with full benefits packages. They made good money and had substantial job security. Nowadays, however, it’s much harder for young adults to find jobs that check all of these boxes. Lots of millennials began their careers at startups with no retirement plans or currently do freelance work full-time. Those who do find stable jobs at large businesses might not do so until their early 30s.
Saving for the future can feel pretty intimidating when you don’t have an excellent salary or employer retirement plan. “Why bother?” someone might think. I believe fewer millennials would subscribe to this attitude if more online content focused on how to save for the future when your job can’t do that for you.
2. Difficult Start = Low Expectations
Facing so much adversity in your career early on can lower your expectations for the future. In my opinion, this is why many millennials have no desire to buy a house, get married, create an investment portfolio or retire at the same age as previous generations. One of my millennial employees recently told me that in his 20s, the mere concept of “retirement” seemed like an absurd fantasy. He had so much trouble building his career that he couldn’t even fathom the idea of having enough money to stop working at just 65 years old.
Situations like this are when finance professionals have to tap into the psychological aspect of their jobs. Millennials need to be told that the aforementioned life goals are still within their reach, even if it takes them longer than expected to make a decent salary. It would also help to remind millennials that these life goals are incredibly rewarding, as opposed to just “status symbols” or unnecessary drains on your bank account.
3. The internet only makes finance more intimidating.
Earlier, I alluded to the role of online content in financial apathy. Not only did millennials grow up with the internet, but many of them also have jobs in which they are essentially on the web all day. Though online content can be a fabulous educational tool, the sheer volume of it is extremely overwhelming. How can you possibly know which person is giving the right advice for your needs? One finance expert tells you to do one thing, while another might tell you to do something completely different. Having to navigate all this content to find the right advice makes financial decisions seem significantly more complicated, as if they weren’t daunting enough already.
My finance firm is able to thrive in the digital era because the internet cannot entirely replace the value of speaking to an expert. People who find this content confusing should consider talking to an accountant or another finance professional face-to-face. It’s perfectly understandable to use the internet for little tips here and there, while you leave the big decisions to human beings.
Financial advisors can increase their appeal for millennial clientele by emphasizing that it’s never too late to start building financial security, even if you’re basically starting from scratch. Millennials will also take comfort in the realization that they now have someone they can trust for any sort of financial advice. Whether it’s opening new bank accounts, entering the stock market or saving for a house, being able to rely on just one person for all things finance will show millennials the true value of this partnership.
Financial security is not just for the rich.
Millennials who are apathetic about their finances are likely under the impression that financial security is only for people who make lots of money and are “naturals” at managing it. This couldn’t be further from the truth. Once you tear down this perception, it becomes clear that, generally, any remotely responsible person can be financially secure, regardless of their salary or natural talents. It worked this way for previous generations, so it can work for millennials too.
Instead, it’s the various obstacles millennials have faced since entering adulthood and how their internet-driven world has transformed their perception of things. If finance professionals had a better understanding of how millennials grew up, they might know how to bestow advice that directly accommodates their unique challenges.
Here are three reasons millennials seem apathetic about their finances:
1. Stable, well-paying jobs are harder to find.
A great deal of online finance content is centered around retirement. It tells readers to start saving and investing as early as possible while making sure they manage their employer retirement plan correctly. Well, many millennials don’t believe they are in the position to do these things because they lack the required resources.
In the past, it wasn’t difficult for young adults to find jobs at large, established businesses with full benefits packages. They made good money and had substantial job security. Nowadays, however, it’s much harder for young adults to find jobs that check all of these boxes. Lots of millennials began their careers at startups with no retirement plans or currently do freelance work full-time. Those who do find stable jobs at large businesses might not do so until their early 30s.
Saving for the future can feel pretty intimidating when you don’t have an excellent salary or employer retirement plan. “Why bother?” someone might think. I believe fewer millennials would subscribe to this attitude if more online content focused on how to save for the future when your job can’t do that for you.
2. Difficult Start = Low Expectations
Facing so much adversity in your career early on can lower your expectations for the future. In my opinion, this is why many millennials have no desire to buy a house, get married, create an investment portfolio or retire at the same age as previous generations. One of my millennial employees recently told me that in his 20s, the mere concept of “retirement” seemed like an absurd fantasy. He had so much trouble building his career that he couldn’t even fathom the idea of having enough money to stop working at just 65 years old.
Situations like this are when finance professionals have to tap into the psychological aspect of their jobs. Millennials need to be told that the aforementioned life goals are still within their reach, even if it takes them longer than expected to make a decent salary. It would also help to remind millennials that these life goals are incredibly rewarding, as opposed to just “status symbols” or unnecessary drains on your bank account.
3. The internet only makes finance more intimidating.
Earlier, I alluded to the role of online content in financial apathy. Not only did millennials grow up with the internet, but many of them also have jobs in which they are essentially on the web all day. Though online content can be a fabulous educational tool, the sheer volume of it is extremely overwhelming. How can you possibly know which person is giving the right advice for your needs? One finance expert tells you to do one thing, while another might tell you to do something completely different. Having to navigate all this content to find the right advice makes financial decisions seem significantly more complicated, as if they weren’t daunting enough already.
My finance firm is able to thrive in the digital era because the internet cannot entirely replace the value of speaking to an expert. People who find this content confusing should consider talking to an accountant or another finance professional face-to-face. It’s perfectly understandable to use the internet for little tips here and there, while you leave the big decisions to human beings.
Financial advisors can increase their appeal for millennial clientele by emphasizing that it’s never too late to start building financial security, even if you’re basically starting from scratch. Millennials will also take comfort in the realization that they now have someone they can trust for any sort of financial advice. Whether it’s opening new bank accounts, entering the stock market or saving for a house, being able to rely on just one person for all things finance will show millennials the true value of this partnership.
Financial security is not just for the rich.
Millennials who are apathetic about their finances are likely under the impression that financial security is only for people who make lots of money and are “naturals” at managing it. This couldn’t be further from the truth. Once you tear down this perception, it becomes clear that, generally, any remotely responsible person can be financially secure, regardless of their salary or natural talents. It worked this way for previous generations, so it can work for millennials too.