With screen time, videogames, Minecraft—is anyone at all surprised?
Fully 78% of millennials say they prefer online videos to learn about personal finance topics, according to a new study from the Global Financial Literacy Excellence Center (GFLEC).
The survey, titled “Millennials’ Engagement with Online Financial Education Resources and Tools: New Survey Insights and Recommendations,” explores gaps in millennial thinking, perceptions and actions.
Perception-Use of Financial Education Resources
- There is a clear preference for online versus offline resources, with nearly eight in ten millennials saying that they prefer videos to learn about financial literacy.
- However, 22% of millennials say they don’t trust online financial resources and another 27% are not sure whether they trust these resources.
- 30% believe quality information is expensive and cannot be available for free.
Knowledge-Motivation Gap
- Only 24% of millennials demonstrate comprehensive financial literacy and about 55% grasp very basic financial concepts.
- However, 92% would like to increase their money management skills.
- Some 60% of millennials rate their personal financial knowledge as “high” but only 55% could answer three financial literacy questions on basic concepts about interest, inflation and risk diversification correctly.
Intention-Action Gap
- Although they spend much of their time connected to the digital world and are aware that there is a preponderance of online resources available, one in five millennials don’t know how or where to start learning about managing their finances.
- Nearly 40% say they don’t have enough money to need information on managing it. Many only seek information when they immediately need it.
- Further, more than 50% of millennials find it difficult to manage their money — even if they know what to do.
- And despite good money management intentions, one-third admit to instant gratification impulse buying even when funds are limited and that they buy things they can’t afford as a reward for hard work.
The survey also found that even in an era of over-sharing, more than one-third of millennials believe personal finance is a private matter and 30% say that discussing personal finance with family and friends is as difficult as talking about weight loss and health issues.
And, in somewhat of a surprise, 42% of millennials model their financial behavior after their parents.
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.
