DES MOINES, Iowa--(BUSINESS WIRE)--This year, Generation Z is entering a workforce where many baby boomers are still on the job. Millennials are worrying over mounting student loans. Gen Xers are trying to balance lingering college debt with saving for their kids’ education. It’s clear that these groups have different needs and behaviors when it comes to money.
Today, Principal Financial Group® launched an insights hub to help shed light on these generational differences.
“We know that money is a deeply personal matter, and how you manage it is impacted not only on where you are in life, but also where you have been,” said Bob Baur, chief global economist with Principal®. “We want to use our findings to continue helping people make financial progress wherever they are in life.”
What to do when mother doesn’t know best…and neither does dad
The new paper, “Filling the financial knowledge gap for all generations” confirms something most of us know; millennials are much more open about sharing than other generations. Even when talking about something as personal as money, they are much more likely to turn to mom and dad for financial advice (37 percent) than Gen Xers (27 percent) or baby boomers (22 percent).
The challenge is the existing financial knowledge gap across all generations. Boomers—many of whom are parents to millennials—share similar apprehensions about choosing smart investments, preparing for retirement and structuring a portfolio. Younger generations are also faced with different challenges and changing rules. Meaning the advice they receive from their elders may be outdated.
“The good news is millennials want to talk and they want to do the right thing,” said Jerry Patterson, senior vice president at Principal. “As they work through how to pay down their student loans or whether or not they can afford a car or a house, their parents can be a first stop, but the best thing may be to bring in a professional.”
Across generations, people are more likely to trust a financial advisor that is recommended by a family member. Millennials may even be open to tagging along with their parents to meet with a financial advisor – 64 percent of millennials (and Gen Xers) say they’d like to receive retirement planning advice in person.
More research to come
Gaining a better understanding of generations and their relationships with money doesn’t start and end with one study. It’s not the first, and it certainly won’t be the last.
The next research paper will dig into the relationships between generations and money. Here, it will discuss how millennials prefer to get financial advice and how boomers can have “the talk” with their kids (the financial talk, that is).
To dig deeper and get tips on budgeting, managing student loan debt and more, visit principal.com/generations.
Research study methodology
This research study was commissioned by Principal Financial Group and conducted by The Center for Generational Kinetics. The survey was administered to 1,203 U.S. adults ages 22–70, with a 20% oversample of Millennials, ages 22–39. Respondents were full-time employees with a minimum household income of $30,000 and the eligibility to participate in their employer’s 401(k) plan. The sample was weighted to the current census data for gender and region and participants were screened for U.S. citizenship. The survey was conducted online from January 28, 2016, to February 3, 2016, and has a confidence interval of +/-3.1%.
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
The Center for Generational Kinetics
The Center for Generational Kinetics is the leading research and solutions firm that specializes in Millennials, generational differences, and iGen.
The Center’s team of PhD researchers, strategists, and keynote speakers help diverse clients solve tough generational challenges driven by increasing generational trends and differences. Each year, The Center works with over 150 clients around the world, from car manufacturers and hoteliers to insurance, health care and technology. The Center’s team is frequently quoted in the media about the effect of generational differences on everything from shopping and parenting to working and retirement.
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
The Center for Generational Kinetics is not an affiliate of any company of the Principal Financial Group.