The Capital One Millennial Mindset on Money survey was released today and it reveals some surprising insights into millennials' attitudes on spending, saving, and sharing. In fact, a large number of millennials have a smart financial head on their shoulders. According to the findings, young adults between the ages of 21 and 29 have a very grown-up attitude to money, with most looking to establish a nest egg for their retirement now and preferring to have a steady job over a get-rich-quick career. Scroll down to read more of the results.
They'd rather have a steady job than be an instant millionaire.
Millennials prefer to play it safe when it comes to work choices, with a staggering 67% stating they would rather live on a "really modest income from steady work well through retirement rather than being a millionaire who has a chance of going broke within a few years and has to go back to work." A third of millennials in the survey said they'd happily take the risk and indulge in the lifestyle of the millionaire who may or may not end up back at work.
They're not private about their earnings.
When it comes to income transparency, most millennials would be happy sharing their earnings via social media. In fact, more than half (58%) of millennials say they would rather post a photo of their paycheck on Instagram than share their Google search history on Facebook (42%). And it didn't matter if they were affluent or not. A massive 81% of millennials earning $150,000 or more choose this option over sharing their Google search history on Facebook compared to nearly two-thirds (64%) of millennials earning $25,000 or less.
They'd rather save their holiday cash.
You'd think most young people would be collecting their holiday cash for seasonal sales, but that's not the case with millennials. When asked what they would do with a $100 cash holiday gift, 40% said they would use the cash to increase their savings balance. And this desire to save actually increases the more money they earn. Half of millennials earning $100,000 or more say they would write a savings deposit slip for the holiday cash.
If the cash doesn't go into savings, 22% would buy a gift for someone else while one in 10 would put it on their student loan. But interestingly only 4% of millennials would use that holiday cash for charity, and those earning over $150,000 or more are the least likely—0% said they would make a charity donation.
Saving a retirement nest egg and paying off student loans are top priorities.
Millennials care about their financial future and get significant "emotional satisfaction" from mastering the many steps along the way. The survey found 27% of millennials said paying off student loans and establishing a solid nest egg would give them the "biggest feeling of accomplishment." This was consistent across gender, geographic region, and geographic density.
They are also aware of the difference between a nest egg and an emergency fund, with 16% stating that not having to dip into the emergency fund would give them satisfaction.
Having good credit rates highly with millennials too. More than one in ten (15%) say improving their credit score and maintaining a zero credit card balance would be a big financial accomplishment, while nearly a quarter (24%) of millennials earning $75,000 to $99,000 say having no credit card debt would be theirs.
They would happily manage their money via social.
Millennials say social media could be the next way they manage their spending, saving, and sharing, with nearly half (45%) stating they would use Facebook to access and manage their money—more than any of the other leading social media platforms (Instagram, Twitter, and Snapchat).
Being irresponsible with money is a deal breaker.
Millennials prefer their partners to be invested in their financial futures too with more than one in 10 (13%) stating that "not having financial acumen is a turn-off as being irresponsible with money is a deal breaker for them." Being a money moocher is also a deal breaker for 14% of millennials.
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Do you agree with these findings? Would you rather have a steady job into retirement than a millionaire's life? Let us know below.