American Millennials do not take many risks in managing their financial affairs, a new TD Bank survey has found.
The nationwide TD Bank Financial Education Survey of 2,031 people ages 18 to 34 included a subset of 501 Hispanic Millennials, 49 percent of whom described their overall personal finance habits as cautious.
In the survey, 39 percent of Hispanic Millennials characterized their financial personality as “knowledgeable,” and 35 percent said they were “well informed” on day-to-day banking practices, such as opening a checking account.
Hispanic Millennials reported that they relied primarily on financial institutions and their families for advice. In addition, more Hispanic Millennials than Millennials in the general population had participated in a form of financial education.
Fifty-five percent of the general population saw their parents as primary influencers in shaping their banking and financial views, compared with 49 percent of Hispanics. Thirty-three percent of all respondents turned to their bank for information.
Sixty-nine percent of Millennials said they had not participated in any formal financial courses, seminars or workshops, compared with 58 percent of Hispanic Millennials who had not done so.
Even with a larger share of Hispanic Millennials reporting participation in a form of financial learning, the study found that still more of them sought advice on financial topics compared with the general population.
Hispanics had the most questions in the following personal finance areas:
- Savings – 45 percent vs. 32 percent of the general population;
- Creating a budget – 37 percent vs. 30 percent; and
- Credit cards – 38 percent vs. 26 percent.
“The study demonstrates that Hispanic Millennials want more insight and support with their personal finances,” Nandita Bakhshi, executive vice president in the retail distribution and product division of TD Bank, said in a statement.
“More than 20 percent of Hispanic Millennials have gone to a bank branch more often than last year for advice. They are looking for a trusted financial partner to help them become confident consumers.”
Active online and in branches
The study found that Hispanic Millennials were as likely as the general population to use branch banking, but were much more active than the general market when inside, making deposits, withdrawing money and seeking advice.
Fifty-nine percent of Hispanic Millennials surveyed felt that banking in person provided more security and face-to-face service. Moreover, 62 percent found it easier to resolve issues or disputes in-branch, compared with 48 percent of the general population.
However, 90 percent of Millennials said they used online or mobile tools for their everyday banking activities, such as checking balances or paying bills. Sixty-two percent of Hispanics were using mobile banking more frequently than they were last year, compared with 57 percent of the general market.
Thirty-nine percent of Hispanic Millennials said they checked their balance and activities daily, and 49 percent did so weekly. They were also 11 percent more likely to check their accounts using texting and mobile technology than the general population.
“Hispanics should find a bank that offers quality mobile and online banking tools, but also provides the traditional human interaction that Hispanic Millennials find most helpful in understanding their personal finances,” Bakhshi said.