Rates of Millennials in leadership positions are growing increasingly larger as the workforce faces a shift of Baby Boomers from work into retirement. As these Millennials begin to take on more positions of leadership, they are also beginning to manage larger amounts of money as the financial control in the family pivots to their hands. Not only is there a deviation to a new generation of financial control, but also a growing number of females as they continue to grow into leadership roles. It will be vital for a more extensive understanding of the viewpoints of Millennials when it comes to money management and the differences between their outlook and that of prior generations.
A survey conducted by PwC1 showed that only 24% of the 5,500 millennials that were surveyed indicated an adequate amount of financial intelligence. Most millennials do not have a well-rounded education in finance and often don’t know where to get started. As many Millennials were entering the workforce at the start of the 2008 economic crisis, they often are very aware of financial risk which influences the way that they view financial strategies.
When compared to other generations, Millennials have grown increasingly more comfortable with discussions around money. Professional Millennials often discuss their salaries and compensation with friends and peers, leading to more visibility as to compensation and pay gaps. This will most likely lead to an increase in discussions surrounding overall financial and investment decisions as Millennials gain even more control over financial decisions.
The combination of lower financial literacy coupled with more open discussions around salaries positions Millennials in a unique spot to better communicate with one another around finance. The habits learned from honesty and openness surrounding salaries and financial compensation will most likely influence the generation to be more open to discussing the strategies and ways in which they handle money. An increase in financial conversations will positively impact the financial intelligence of those in their circle by making them more aware of the nuances of the financial industry.
1 2012 National Financial Capability Study (NFCS)
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