Millennials display youthful exuberance in terms of their willingness to take risks with their investments and feel positive about investing their money. Yet having seen the impact of the crisis on their parents’ investments, millennials are the most likely of any generation (46%) to agree that “what you might earn investing isn’t worth the risk of losing your money.”
Millennials and the oldest Americans feel the most positive about their financial future, with Boomers and Generation X the least optimistic.
Millennials are the most excited about the prospect of investing, but also have the biggest fears about its downsides.
Millennials are highly open to advice of any age group—whether traditional or online.
Millennials are optimistic their futures and about retirement, but still heavily reliant on cash as they build up a buffer for a rainy day.
We can untangle Americans’ deep-seated emotions around cash by exploring behaviors learned by more engaged investors. These individuals, regardless of net worth, effectively engage with investing through an intersection of discipline, access to information and advice.
As a young investor, it’s important to make sure you’re making some initial steps—such as contributing as much as possible to an IRA and 401(k), and giving yourself a monthly goal for setting aside retirement savings.
While it’s crucial to have a cash cushion for emergency expenses, make sure you’re also not letting cash sit idle. Put that extra cash into investments so your money works for you.