But most have anxiety about their money
The secrets to happiness have been pondered forever but a new report from Wells Fargo says financial planning is certainly a factor.
The bank’s survey of millennials has found that this generation is happier “when they take specific action with their money and are engaged in financial planning.”
Young adults are generally happy but 69% say they want to get over their anxiety about money.
The study of 1,771 millennials includes 26% who are affluent, with at least U$100,000 in investible assets including a median income of $88,000; and 74% who have less than $100K of investible assets and a median income of $43,000.
“In this research, millennials have told us that love and family are the keys to happiness,” said Kristi Mitchem, CEO of Wells Fargo Asset Management.
Mitchem said that the more active this generation are with their finances, the happier they are but added that “it’s not clear that millennials recognize how being proactive with finances leads to happiness.”
The study was centred on responses to five key statements:
The study also found that high levels of debt are a key concern for millennials with only 32% saying they are happy with their ‘financial life’.
“Money is probably the area they don’t want to grapple with. Yet if we can change this mindset and expand the population of millennials who engage with their money, they will reap the rewards of greater happiness — and at the same time, put themselves on better financial footing,” Mitchem said.
There is also some work for financial advisors to do on helping millennials understand the benefits of investment on the stock market.
Just 17% are not currently investing by plan to in the future, 20% are not investing and say they never plan to, and 53% say they will never be comfortable investing in the market. One in four say they have reduced their stock market investments following the financial crisis.
The bank’s survey of millennials has found that this generation is happier “when they take specific action with their money and are engaged in financial planning.”
Young adults are generally happy but 69% say they want to get over their anxiety about money.
The study of 1,771 millennials includes 26% who are affluent, with at least U$100,000 in investible assets including a median income of $88,000; and 74% who have less than $100K of investible assets and a median income of $43,000.
“In this research, millennials have told us that love and family are the keys to happiness,” said Kristi Mitchem, CEO of Wells Fargo Asset Management.
Mitchem said that the more active this generation are with their finances, the happier they are but added that “it’s not clear that millennials recognize how being proactive with finances leads to happiness.”
The study was centred on responses to five key statements:
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All |
Women |
Men |
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I have enough money to be able to save for future needs |
58% |
51% |
68% |
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I am saving enough for retirement |
58% |
50% |
68% |
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I feel in control of my financial life |
68% |
62% |
78% |
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I take an active role in setting and achieving goals for my financial life |
83% |
81% |
87% |
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I am able to pay for my monthly expenses |
85% |
84% |
87% |
Men are more likely (55%) agree with all five statements than women (45%).
The study also found that high levels of debt are a key concern for millennials with only 32% saying they are happy with their ‘financial life’.
“Money is probably the area they don’t want to grapple with. Yet if we can change this mindset and expand the population of millennials who engage with their money, they will reap the rewards of greater happiness — and at the same time, put themselves on better financial footing,” Mitchem said.
There is also some work for financial advisors to do on helping millennials understand the benefits of investment on the stock market.
Just 17% are not currently investing by plan to in the future, 20% are not investing and say they never plan to, and 53% say they will never be comfortable investing in the market. One in four say they have reduced their stock market investments following the financial crisis.
