Millennials - Wealth Enhancers ... this generation. We're Australia's most experienced Millennial...

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Transcript of Millennials - Wealth Enhancers ... this generation. We're Australia's most experienced Millennial...

  • Millennials money&

    research report a

  • Wealth Enhancers helps high-achieving Millennials build and manage their wealth through a combination of expert financial advice, coaching and accountability, and a thriving community of tall poppies.

    WE provide financial advice aligned with the goals, values and lifestyles unique to this generation. We're Australia's most experienced Millennial Financial Advisory Firm.

    Our mission is to create Australia's first financially free generation, in our country's history.

    about

    In Millennials and Money, we asked 565 Millennials about their wealth, needs, goals, concerns and more to find out what they really care about. The results were eye opening.

    1. The basics

    2. Constantly striving for balance

    3. The most complicated relationship

    4. Investment outlook vs debt outlook

    5. Millennials and charity

    CONTENTS

  • BASICS

    the

  • 12% 36% 40% 12%

    Millennials are currently the largest generation of people. They were born between 1980 and 1996

    age 20-24 age 25-29 age 30-34 age 35-38

    Relationships

    28%

    single

    31% 6% 34% 1%

    in a

    relationship

    engaged married divorced

    Children

    12% 15% 73%

    one kid 2 or more kids no kids

  • Income

    9%

    17.5%

    26%

    19.8% 17.5%

    8%

    2%

    $25.000

    0.2% $25.000

    - 50.000

    $50.000

    - 75.000

    $75.000

    - 100.000

    $100.000

    - 150.000

    $150.000

    - 250.000

    $250.000

    - 500.000 $500.000+

    one kid more than one kid no kids

    2% 60%

    unemployed student professional entrepreneur

    sports pro media pro tradesperson other

    4% 19%

    0.6% 2% 2% 10%

    Work

    Generation glass half full

    When we asked about the personality type and general attitude of millennials, we found that most are optimists. 

    66% Optimistic and

    positive

    24% 10% neutral Pessimistic and

    skeptical

  • Priorities across the board

    Fitness

    12% 34% 40% 14% Everyday or almost

    every day

    Three to five days

    a week

    Once or twice a

    week Rarely or never

    Social life Millennials aren’t just glued to their phones. They love

    to get out and about with mates, too!

    1.5% Everyday or

    almost every day

    Three to five

    days a week

    21%

    Seeing the world

    61% Once or twice

    a week

    16.5% Rarely or

    never

    The majority rated travel to be important (7/10) 

    Turns out staying fit and healthy is a priority too, with 87% of Millennials working out at least once or twice a week  

    pRIORITIES ACROSS THE BOARD

  • constantly striving for balance

  • What motivates Millennials?

    Unlike the generations that precede them, millennials value experience over everything else. 

    When it comes to millennials and their jobs, our survey showed  it's not just about the money.

     

    Millennials & Net WEALTH

    85% of those in our survey reported they are more motivated toward experience than possesions. 

    said they strive to find balance between good pay and a reasonable job they like

    50%

    68%

    said that it’s extremely important to them that their career and role aligns with their passion and purpose 

    5% would be in it for the money completely even if they hated  the job.

      only

  • the most complicated relationship

  • 08 The Most Complicated Relationship Of All

    How we relate to money is a huge factor in how we spend and invest it

    money management

    manage money  themselves.

    only                        feel they are totally in control

    We know there are many contributing factors to our relationship with money. So we dug deeper:

    reported that the way they feel about money is partially attributed  to their upbringing and partially to their individual life experiences.

    For the most part, millennials reported that their upbringing positively impacted their relationship with money 

    60% positive impact

    17% no impact negative impact

    23%

    58% 13% 10% 8%

    33%

    experience guilt when spending, even with investments and savings

    spend without thinking about

    the consequences

     don’t feel in control and are aware that they’re not using it effectively

    dislike money and avoid thinking about it

    73%

    11%

    their partner  manages it

    get help from their parents

    get help from a financial advisor

    get help from  an accountant 

    13%

    22%

    12%

    12%

  • Money & influence

    Millennials are either pretty independent or only let their friends spending habits influence  their decisions sometimes.  

    13%Only                   feel pressured to spend in a similar way as their friends

    comparing wealth with friends

    And when it comes to income…

    Mum is not the word when it comes to money

    5% never talk about money and were taught not to speak about it.  42% reported they sometimes talk openly about money with friends and family 

    as they’re not shy about it. 40% reported they talk about money with someone they trust, and only rarely.

    12% are a completely open book about money.

    feel they have less wealth than them  

    feel they have much less wealth than them  

    feel they have more wealth than them  

    feel they have much more wealth  than them  

    feel they have similar wealth  

    think they earn less 

    think they earn  much less 

    think they earn more

    think they earn much more

    think they earn the same

    26%

    5%

     22.5%

    6%

    40%

    23.2%6% 21.5% 2.8%42%

  • investment outlookvs debt outlook

  • Knowledge is power

    Do Millennials have it?

    said they didn’t feel prepared to manage their personal finances when they graduated from high school 50%

    of our respondents said they couldn’t remember taking part in any personal financial management education at school. 

    Our survey revealed the lack of financial education at school is a great contributor  to millennials not feeling able to manage their personal finances.

    80%

    while a staggering

    What do millennials consider to be risky?

    When it comes to shares, millennials consider them to be…  

    And when it comes to property, millennials consider this investment to be…  

    Not risky, but important to

    building wealth

    According to these results, millennials are slightly more open to investing in property than shares overall. 

    Somewhat risky,

    but okay to  invest in:

    Not risky with the right education

    Unsure

    Risky enough to  avoid completely

    39% 38% 16% 5% 2%

    Somewhat risky, but not something

      to avoid

    Not risky with the  right education

    Not risky at all, important to build wealth

    Unsure

    Risky enough to  avoid completely

    19% 43% 19% 14% 5%

  • Millennials know that some debt is healthy

    51.5% feel that debt is

    necessary to build wealth

    17.2% say they avoid debt at all costs

    21.3% say that debt is okay if it’s used to build income

    10% report that credit card debt

    is just a part of their life

    39%

    35%

    23%

    22%

    7% 13%

    FOR THOSE MILLENNIALS WHO ARE ENGAGED WITH THEIR FINANCES,

    THESE ARE THE PRODUCTS THEY USE

    Superannuation

    Credit card

    Life insurance

    Mortgage

    Income protection service

    Property

    85%

    45%

    42%

    41%

    39% 75%

    39%

    Total & permanent disability

    Shares

    Personal loan

    Trauma insurance

    Managed funds

    Self managed superannuation

  • Taking a closer look at those who aren’t investing...

    37% are waiting until they earn more or receive a bonus or windfall.

     1% are waiting until marriage and 4% are waiting until they reach a specific age.

    11% don’t know where to start and 3% reported they don’t know who to ask for help.

     3% are concerned about losing money and are held back by the risk factor, while  

    3% just haven’t gotten around to it. 

    Why don’t millennials have financial advisers?  

    concerns about the cost:

    Millennials As Investors

    When asked about who they would seek advice from,                 said they'd go to a

    financial adviser or planner first. 49%

     would hit up the bank. 

    uncertainty about which one to choose

    a distrust in  financial advisers

    no time

    ONLY 3%

     38% would seek advice from their friends or family before going to a planner

    8% would go to an accountant

  • For the millennials that do have fina