In Uncertain Economic Times, New Alliant Credit Union Survey Shows Millennials are the Most Fiscally Motivated and Responsible Generation
A new survey from Alliant Credit Union – a member-owned, digital-only financial institution headquartered in Chicago, Illinois – reveals millennials feel more obligated to responsibly manage their finances compared to other generations. The growing pressure to make smarter financial choices to prepare for an uncertain future is so great, in fact, that more than half of millennials (52%) even admitted to embellishing the amount of money in their emergency fund to friends and/or family.
"When it comes to managing personal finances, external societal factors can present varying challenges and pressures for different generations," said Chris Moore, Director of Deposits and Payment Strategy at Alliant Credit Union. "It's encouraging to see that millennials remain committed to smart money management during these trying economic times. Regardless of the generation, however, all Alliant Credit Union members have access to money-saving products and services designed to help everyone achieve their financial goals."
Alliant Credit Union partnered with Atomik Research to survey 2,006 respondents spanning Gen Z (ages 18 to 24), millennials (25 to 40), Gen X (41 to 56), and baby boomers (57+) across the U.S. The survey found a direct correlation between the uneasiness millennials feel due to the current economic environment and how they plan to approach tax season, manage savings priorities, and "spring clean" their finances this year:
As millennials approach tax season, 77% agree that they would feel less guilty spending their refunds on something fun, such as a trip or a new luxury item if they put some aside toward their savings.
In addition, 42% of millennials also stated they plan to spend their tax refund paying off student loans or credit cards to stay out of, or quickly pay off, debt to reach their financial goals.
When it comes down to personal savings priorities and strategies, millennials take the lead in learning about the different options available to them. 71% of millennials utilize and understand the benefits of a certificate of deposit (CD), compared to just 42% of Gen Z and 39% of baby boomers. With average rates ranging between 4% (for 48 months) to 5% (for 12 months), all generations agree on the value and security of CDs for growing their savings.
With savings at the forefront of millennial mind's this spring, 71% say investing their money in a CD would minimize their desire to impulse shop, while only 57% of Gen Z, 56% of Gen X and 52% of baby boomers agree.
There's no time like the present: No matter where one might be on the journey to financial wellness, spring is the peak season for tidying up one's finances with 71% of millennials stating that organizing their personal finance records and documents is part of their spring-cleaning process.
Millennials (70%) also take the lead when it comes to being knowledgeable on how to protect themselves against identity fraud compared to just 40% of Gen Z, 46% of Gen X, and 41% of baby boomers. Alliant found that half of the millennials surveyed (50%) have already enabled multi-factor authentication on their online banking accounts.
The majority of millennials still trail other generational cohorts when it comes to achieving life milestones, such as purchasing a home. For example, according to recent Census data the homeownership rate for millennials (48.6%) trails behind Gen X by 20%, and baby boomers by 30%. Though millennials may feel behind reaching financial milestones or an uneasiness as the current economic climate continues to change, Alliant's recent findings suggest they are more financially driven than any other generation in the U.S.
Survey Methodology: Alliant Credit Union partnered with Atomik Research to conduct an online survey of 2,006 adults who identify as Gen Z, millennials, Gen X, and baby boomers throughout the United States. The margin of error for the overall sample is +/- 2 percent with a confidence level of 95 percent. Fieldwork took place between February 24 and March 3. Atomik Research is an independent, creative market research agency.