Despite being one of the most financially aware generations, millennials are the most worried about their financial future, according to research by Mortgage Choice and Core Data.
The research shows millennials are the most financially savvy generation, with 56% of millennials monitoring their finances on at least a weekly basis – above the national average of 52%.
The research also found that 21% of millennials said they save over 20% of their net income after paying rent and other living expenses, compared to 16% of Australians.
But when asked about their level of confidence that they were on the right track financially, nearly half (45%) said they were not confident, and just under 80% said that they worry about their current financial situation.
“It is normal to feel uncertain about the future when you have your life ahead of you; however, young people have the luxury of time on their side,” said Mortgage Choice chief financial officer, Susan Mitchell.
Interestingly, the rising cost of living (40%) was seen as the greatest driver of this concern, higher than their worries about their job security and health.
For a younger generation that has never experienced high unemployment, this makes sense.
‘DIY’ approach to finances
According to the survey, 39% of millennials would rather manage their own finances and seek reliable information to help support their decision making than seek the help of a financial planner.
The research found that millennials don’t understand the value of professional financial advice because most of them don’t know where to look for it.
When asked what circumstances would drive them to seek financial advice from a financial planner, the most common response from millennials was that they would need to find themselves in a position of financial stress.
Other responses were if they were to suddenly come into a substantial amount of money or generally possess more wealth.
“This is a common misconception. The reality is an experienced financial adviser can help you plan for your future, regardless of your level of wealth, and give you peace of mind that you are on track to meet your goals.”