Thanks to parents, Millennials are bullish on retirement, finances
NEW YORK–(BUSINESS WIRE)–Of course, Boomers had “THE Talk” about the “birds and the bees” with
their kids. But they put more value in having the “money talk” because
they want to be much more open about finances than their parents were
- 96% of Boomers say it’s important to have the “money talk”
- 89% talk about the “birds and the bees.”
That has given the Millennial generation heightened awareness about
budgets, greater financial confidence, and more ambition to retire
earlier than the generations before them.
These findings emerged from a major
study by Chase and the Center for Research on Consumer Financial
Decision Making at the University of Colorado. It examined the
similarities, differences, and ramifications of how different
generations discuss and feel about money.
The study also brought together pairs of people from different
generations across the United States to talk about money, generating
Parents of Boomers avoided talking about money; Millennials’ parents
talked about it a lot
34% of Boomers say their parents spoke about money with them; compared
to 74% of Millennials who had the “money talk” with their parents.
Only 20% of Boomers were told by their parents how much money they
made; compared to 54% of Millennials who say their parents were more
open about their salary.
“Money Talk” Makes Millennials Bullish
Millennials began socking away for retirement at age 23 – 17 years
sooner than Boomers got going. They are much more confident in their
financial decision making and are preparing for the future. In fact,
Millennials are shooting to retire by age 60, almost a decade before
78% of Millennials follow a budget as opposed to 59% of Boomers.
77% of Millennials say they have confidence to make complex financial
decisions, compared to 61% of Boomers.
64% of Millennials are optimistic about their financial future,
compared to 57% of Boomers.
Millennials Will Take It One Step Further
Inspired by their parents, Millennials plan to start teaching their kids
about money at the age of 13 – a two year head start on Boomers.
Most Millennials (82%) are comfortable talking to everybody about money,
including family, friends and professional advisors.
“We find that different generations have different family obligations
and different willingness to talk money with other family members.
Perhaps that is because Millennials are in tighter financial
circumstances and need to talk with family members and others to cope,”
said Professor John Lynch, who directs the Center for Research on
Consumer Financial Decision Making.
“Knowing more about each generation helps us provide financial advice
with even greater relevance,” said Peter Wall, Chief Market Strategist
for Chase. “Our findings reinforce the importance of having open and
honest conversations about finances – no matter where you are in your
The study was done in conjunction with a five-city social experiment
that looked at generational views toward financial candor, confidence,
retirement and the American Dream, a project called Generational Money
Talks sponsored by Chase.
To learn more about the study and follow the Generational Money Talks
series, please visit Chase.com/TheTalk.
About the Chase and University of Colorado,
Chase commissioned an online survey about personal financial views and
habits. The survey is among a nationally representative sample of 2,021
adults (18 years old and older) living in the continental United States
with an oversample to obtain 200 respondents in the following cities:
New York, Los Angeles, Chicago, Dallas, Phoenix, Columbus, Miami and San
Diego. The survey was conducted between June 9th and June 17th, 2016
with a margin of error of +/- 2.18 percent at the national level and +/-
7.93 percent at the local market level with a 95% confidence level.
The Center for Research on Consumer Financial Decision Making conducts
original scientific research and promotes dialogue among experts from
academia, business, and government on the topic of how to help consumers
make better financial decisions. www.Colorado.edu
About the Social Experiment
Chase paired Millennials, Gen X’ers and Boomers who were complete
strangers to discuss their finances in New York, Dallas, Miami, Chicago
and Los Angeles. The live conversations focused on major life moments
when significant financial decisions are often made – such as marriage
and retirement. Additionally, in partnership with the University of
Colorado Boulder’s Center for Research on Consumer Financial Decision
Making, Chase commissioned a study to better understand what drives the
financial goals, concerns and decisions of these generations through a
national, quantitative survey.
Chase is the U.S. consumer and commercial banking business of JPMorgan
Chase & Co. (NYSE: JPM), a leading global financial services firm with
assets of $2.4 trillion and operations worldwide. Chase serves nearly
half of America’s households with a broad range of financial services,
including personal banking, credit cards, mortgages, auto financing,
investment advice, small business loans and payment processing.
Customers can choose how and where they want to bank: 5,300 branches,
16,000 ATMs, mobile, online and by phone. For more information, go to
J.P. Morgan Chase & Co.