Scarborough has been providing insights into the illusive Millennial* generation in a series of new analyses. Scarborough’s complimentary study uncovers Millennials’ unique media trends. The below article addresses finance and spending. Stay tuned for more in our series!
The downturn of the American economy had a strong impact on the 20 percent of American adults who are Millennials, many of whom graduated from school into the declining job market. A much-discussed issue among Millennials during the financial crisis has been student loan debt. Millennials are 26 percent more likely than other generations to live in a home that has taken a personal loan in the past year. Their attitudes back up this behavior as they are also 29 percent more likely to disagree that they hate to borrow money and 10 percent more likely to agree they feel overwhelmed by financial burden.
In terms of investing, though Millennials are 34 percent more likely than all U.S. adults to agree they like to take risk when investing for the chance of a high return and 33 percent more likely to agree they find the ups and downs of financial markets exciting, 65 percent of Millennials live in a household that has no investments. They are, however, leading the way in terms of digital financial management. Millennials are 21 percent more likely to agree they would be happy to use the internet to carry out day to day banking transactions. In fact, they are 15 percent more likely to live in a house that has used online banking in the past 12 months.
Though Millennials may not be investors, and may be open to taking loans, they still have an understanding of their personal finances. Millennials are 32 percent more likely to agree that they always know broadly how much is in their bank account at any one time. While they are also 22 percent more likely to disagree that their parents tend to be savers rather than spenders.
The top financial services used by a Millennial household in the past 12 months are:
SOURCE: Scarborough USA+ Study, Release 1, 2012-Scarborough/GfK MRI Attitudinal Insights Data*Scarborough defines the different American generations as Millennials (age 18-29), Generation X (30-44), Baby Boomers (45-64) and the Silent Generation (65+).