Some good news about “Generation Z” (ugh …).
Young 401(k) participants want more personal finance education and young women, who will ultimately live longer, tend to be more financially independent than young men.
“While striving for financial independence, the majority of young Americans say they did not learn enough about practical money matters in school,” according to a new report from Bank of America Merrill Lynch. “Though their education has set them up for success in other ways, young Americans are not necessarily feeling ‘life-ready’ upon graduating.”
While hardly news to anyone who’s ever been a parent, the banking behemoth found only 31 percent said their high school education did a good job teaching them strong financial habits. Of those who attended or are currently attending college, only 41 percent said their college education did or has done a good job imparting those lessons.
When asked what they wish they had learned more about in school, nearly all said personal finance, more so than any other subject:
- Forty-three percent wish they had learned how to invest.
- Forty percent wish they had learned how to do taxes.
- Twenty-six percent wish they had learned how to manage monthly bills.
Additionally, in nearly every category included in the survey, young women reported taking on financial responsibilities at a higher rate than young men.
- Sixty-one percent of women ages 18 to 26 are saving, versus 55 percent of men.
- Thirty-six percent do their own taxes, versus 28 percent of men.
- Thirty-three percent have their own health insurance plan, versus 25 percent of men.
The survey also found that those young Americans without college experience were more likely to characterize themselves as adults at an earlier age. Thirty-six percent of those who had no college experience consider adulthood to begin at age 18, compared to 24 percent of those who attended college.
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.
