New Research: Millennials and Money Management

COM16MM_Money_1200X900Express Employment Professionals recently teamed up with the School of Media and Strategic Communications at Oklahoma State University (OSU) in Stillwater, OK, to conduct research about Millennials and their attitudes toward the American Dream. Also known as “Gen Y,” Millennials were born between 1979 and 1995 and currently make up 30% of the population. As they enter the workforce and establish career paths, it’s important to understand the motives and desires behind this robust generation.

Express and OSU students surveyed Millennials, the majority of whom are working full- or part-time, to paint a picture of the generation’s view of money management, charitable giving, and spending habits.

Money Management Preparedness
If you’re a Millennial who believes money management is an important part of your success, you’re not alone. According to the survey results, 84% of Millennials believe money management is “very important,” and an additional 10% believe it is “somewhat important.”

When it comes to money management, the overwhelming majority (62%) of Millennials revealed that they believe their parents or guardians prepared them for making important decisions. Only 12% of respondents believe they are unprepared to make important money management decisions.

To further explore the influence parents have on money management, Millennials were asked whether or not their spending style is similar to that of their parents’ spending style. The majority (72%) believe that their style is a direct reflection of their parents.

Spending Habits
Our survey also revealed that 47% of Millennials consider themselves impulse buyers, and 70% believe their money management style is a mixture of spending and saving. Of those surveyed, 87% reported having a savings account.

When asked what they spend the most money on, Millennials reported, in the following order:

  • Student loans
  • Other
  • Travel
  • Clothing
  • Entertainment
  • Food

Charitable Giving
According to the survey results, there are several factors that help Millennials decide to which charities and nonprofit organizations they will donate money. Those factors include the following key words:

  • Cause
  • Children
  • Local
  • Effect

When asked how likely they are to donate money to a charity or nonprofit organization in the next 12 months, 86% of respondents reported they are likely to do so. Of that 86%, 36% said they are “extremely likely” to donate money to a charity or nonprofit organization, 24% said they are “somewhat likely,” and 26% reported they are “moderately likely.” Only 3% of respondents said they are “not at all likely” to donate.

Although the overwhelming majority of those surveyed plan to donate money to organizations this year, they seem unsure about how their donations will help those organizations. In fact, 36% of respondents claimed they believe their monetary donations are only “moderately helpful” for charities and nonprofit organizations.

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