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More than half say they do not have an emergency fund. Two-thirds say their parents encouraged them to save, but only half say their families modeled good money management, and even fewer say their parents showed them ways to grow wealth beyond having a job.
“It’s no secret that our attitudes toward money are likely influenced by how much financial education we received as children and the types of role models we have in our immediate family,” says Rich Ramassini, senior vice president and director of strategy and sales performance at PNC Investments. “However, this survey finds that Millennials’ financial education largely skewed toward savings instead of investing. When it comes to building wealth over the long term, investing is a critical component of a portfolio and one that should not be ignored.”
Younger Millennials, those who were in high school during the Great Recession of 2008, say their family modeled good money management, slightly more so that older Millennials who were in college or in the workforce during that period. Seventy-nine percent of those between the ages of 25 and 29 say their parents talked to them about managing finances, whereas only 70% of Millennials between the ages of 30 and 35 say the same.
Half of Millennials expect to retire with financial stability, although most admit they do not know how to successfully invest.
“As this generation matures and acquires more wealth, it’s absolutely critical that they devise a comprehensive financial plan, which consists of an emergency fund, a mix of savings and investing, and an intimate understanding of their future goals,” Ramassini adds.
Chadwick Martin Bailey designed the online survey, which was conducted in January among Millennials between the ages of 21 to 35 with investable assets of $5,000 or more or a 401(k) or 403(b) plan and at least $1,000 in investable assets.