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Survey highlights millennials’ need for greater financial education

Survey highlights millennials’ need for greater financial education

A recent US survey by PNC Investments suggested that half of millennials expect to retire with financial stability, although most admit they do not know how to successfully invest.

Conducted in January the online ‘Millennials and Investing Survey’ was conducted among millennials between the ages of 21 to 35 with investable assets of £5,000, and highlighted their fears that they are not saving enough for the future.

Millennials are now the largest group in the workforce, but more than half said they do not have an emergency fund; two-thirds said their parents encouraged them to save, but only half say their families encouraged good money management, and even fewer say their parents showed them ways to grow wealth beyond having a job.

our attitudes toward money are likely influenced by how much financial education we received as children

‘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,’ said Rich Ramassini, senior vice president and director of strategy and sales performance at PNC Investments. ‘However, this survey finds that millennials’ financial education is 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 secondary school during the 2008 recession, were more likely to say their family promoted good money management than older millennials who were in college or in the workforce during that period.

most admit they do not know how to successfully invest

79% of those between the ages of 25 and 29 say their parents talked to them about managing their finances, whereas only 70% of those 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.

 

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