Millennials and money

Some Things Change, Some Stay the Same
Our research revealed that generations have varying feelings about their financial prospects, with Millennials the most optimistic, and Boomers the least. Millennials are the most highly engaged group, but they still share many of the same investing behaviors, with high reliance on cash and cautious view about investing—perhaps from witnessing the impact financial crisis on their parents.
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58%
Most millennials are interested in robo-advisors. At the same time, Millennials are more likely to say advisors are worth
the fees.
* Silent Generation, Boomer and Gen X respondents who answered this question had at least $100,000 in household assets. Millennial respondents who answered this question had at least $50,000 in household assets.

The Risk Paradox

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.”

Millennial Outlook

Millennials are optimistic their futures and about retirement, but still heavily reliant on cash as they build up a buffer for a rainy day.

Taking Action

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.

01.
Set Your Goals

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.

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02.
Get Informed

There’s a lot of information out there. Subscribe to the BlackRock Blog and our Weekly Investment commentary to learn about how to build the best portfolio.

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03.
Think About the Cost of Cash

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.

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