While not as awkward the “birds and the bees,” baby boomers nonetheless want to be more open about their 401(k) finances than their parents were with them.
As a result, millennials have heightened awareness about budgets. They also have greater financial confidence and more ambition to retire earlier than previous generations.
These findings emerged from a JPMorgan Chase and the Center for Research on Consumer Financial Decision Making at the University of Colorado. The joint study examined the similarities and differences of how different generations discuss and feel about money.
The study also brought together pairs of people from different generations across the United States to talk about money, which found the following:
‘The Money Talk’ Makes Millennials Bullish
Millennials began socking away for retirement at age 23, a full 17 years sooner than boomers. They are much more confident in their financial decision-making. They are also preparing for the future. In fact, millennials are shooting to retire by age 60, almost a decade before baby boomers.
Most millennials (82 percent) are comfortable talking to everybody about money, including family, friends and professional advisors.
Millennials Will Take It One Step Further
Inspired by their parents, millennials plan to do their parents one better. Millennials plan to start teaching their kids at age 13 about money, two years ahead of baby boomers.
“We find that different generations have different family obligations and different willingness to talk money with other family members,” says Professor John Lynch, who directs the Center for Research on Consumer Financial Decision Making. “Perhaps that is because millennials are in tighter financial circumstances and need to talk with family members and others to cope.”
The study was done in conjunction with a five-city social experiment that looked at generational views toward financial candor, confidence, retirement and the American Dream, a project called Generational Money Talks, sponsored by Chase.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
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