Most millennials aren’t confident that they’ve saved enough–especially not for a down payment on a home. The findings from PNC Investments’ recent Millennials & Investing Survey provide insight into how millennials are feeling about their finances.
The generation is much more likely to save than invest. While most say they learned about saving money at a young age, they agree that they did not receive as much guidance from their parents about building wealth through investing. While almost two-thirds of millennials report that their parents always encouraged them to save money while they were children, only half say their family modeled good money management and even fewer disclose that their parents showed them ways to grow wealth beyond having a job.
The survey reports that younger millennials – those who were likely in high school during the 2008-2009 Great Recession – describe their family as having modeled good money management slightly more so than older millennials, who were likely in college or in the workforce during the same time period.
Of the millennials surveyed, 79 percent between the ages of 25-29 say their parents talked to them about managing finances, while 70 percent of millennials between the ages of 30-35 report the same.
About half of millennials say they expect to retire with financial stability, though most admit that they do not have a solid understanding of how to successfully invest their money. More than half of millennials also admit they do not have an emergency fund.
“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,” said Rich Ramassini, CFP, senior vice president and director of strategy and sales performance for PNC Investments.
