A new survey released by Charles Schwab is questioning whether Millennials are cognizant of the financial challenges that face them today and the preparation they will need to weather tomorrow’s monetary storms.
determined that Millennials were highly optimistic on money matters: 76 percent believed they will have a better financial future than their parents. However, some of that optimism might be a little too rosy: 53 percent expect to receive an inheritance from their parents and, on average, Millennials are expecting to be able to retire by the age of 60.
Furthermore, 81 percent of Millennials polled for the survey said they want to own a home, but only 54 percent believe that a mortgage is considered good debt. Fifty-one percent said they currently have some sort of debt, but only 3 percent would pay down that debt if given an extra $1,000. One third of Millennials admitting skipping a meal due to a lack of money, while Young Millennials (ages 21-25) saved 15 percent more than Gen Z (ages 16-20) but have 169 percent more debt.
“We live in an increasingly complex financial world, where our personal responsibility for financial management has increased dramatically, but our basic understanding of our finances has lagged behind,” said Carrie Schwab-Pomerantz, President, Charles Schwab Foundation, and Senior Vice President, Charles Schwab & Co. Inc. “We need to commit to educating our youth about money management, so they have the opportunities to achieve the financial freedom they want and deserve.”