1. Social Networks vs. Advisor
Whether it’s posting a question to a forum or as a Facebook status dilemma, Millennias are more prone to using social media to help with their financial decisions. A new study by Ipsos MediaCT, in partnership with LinkdIn, revealed that 91% of Millennials surveyed would use a social network to obtain opinions and comments about financial markets or events. This compares to only 53% of surveyed GenX folks.
2. The “Soloist” Approach vs. Professional Advice
Millennials are more likely to take away the question at hand and conduct their own research to find the answers they are looking for rather than consult an advisor like the GenXers would. Millennials rather access online sources such as published articles, online reviews and opinions, forum discussions etc. on their own rather than delegating the work. The survey stated that 49% of the Millennials surveyed, compared to 38% of GenX folks, preferred to do their own research and make their own personal finance decisions without the help of an advisor. That certainly tells you a lot about the inevitable changes to the “financial advisor” role.
3. Obsolescence is Second Nature
Millennials have seen so much change and advancement in technology and services that switching from one service provider to another is a piece of cake. Gone are the days of long term, almost life commitment relationships with an advisor. Once a new and improved way is available, Millennials are more likely to jump on the bandwagon and join the movement. “Millennials are used to foreseen obsolescence, that things are replaced, that things change, that better things come along to replace what you use and like right now,” says Donna Sabino, senior VP at Ipsos MediaCT. Sixty seven percent of Millennials surveyed stated they would be open to goods and services from companies outside of the traditional financial market, compared to only 45% of GenXers. For example, if Google offered financial services or if Apple introduced bank accounts, Millennials would be more open to these type of offers rather than GenXers.
4. Up to the Ceiling Debt
The class of 2015 is the most indebted class in American history. Since most Millennials have been exposed to insane amounts of student debt it’s no wonder they have a more conservative approach to money. According to Financial Finesse’s research, which is based on responses from workers who use its financial wellness programs at more than 600 major companies, Millennials are generally better at day-to-day finances than GenExers. Millennials are also generally more likely to be on time with bill payments, regularly pay off credit card debts and avoid late fees.