The new crop of young adults who went to and graduated from college during the midst of the millennium’s economic decline should all be issued “I survived the recession,” tee shirts. There’s a lot resting on their shoulders now, and yet many are still struggling to find jobs and get a foothold in the career of their choice.
But like previous generations before them, learning comes in baby steps and often enough from the experience of overcoming adversity. If suffering builds character, then today’s young adults may become one of the most charismatic generations in recent memory. After all, they did go from being the “entitled” generation to “une generation purdue” (the lost generation) in a span of about five years.
When managing their own finances, what remains to be seen is whether these young adults will be aggressive risk-takers in order to make up for early lost ground, or more conservative after witnessing losses experienced by their parents.
In a recent behavioral finance report from Merrill Lynch, the author refers to today’s young adults as “savvy, independent, skeptical and far more conservative than some might think.” Some of the observations of this report include:
· Millennials take nothing at face value; they want to be shown the math.
· Independent but not unorthodox; their investment approach is similar to their parents.
· Millennials don’t want their lives to revolve around money; young adults who inherit a large sum of money say they don’t want to get richer, but rather do something important with what they’ve been given.
· They say that the real path to wealth is through business innovation – not investing.
As was inevitable, the millennial are now moving into our neighborhoods, and it’s a good thing, too. The rise of newly formed households has helped drive demand in the housing industry – lowering inventory and thereby increasing prices. These young adults represent the largest number of potential homebuyers coming in to the market. After a four-year delay, there’s plenty of pent-up demand as they acquire jobs and move out of their parent’s home.
The Merrill Lynch study also revealed that young adults are very open to receiving financial advice. If you have an adult child you think would benefit from a discussion of our services, please encourage him or her to contact us to get that conversation started.
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The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. It is given for informational purposes only. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.