When asked who they trust most for information on money matters, one third (33 percent) of millennials identify their parents as the top choice. But almost one in four (23 percent) indicate they trust “no one” to advise them on money matters.
Fidelity Investments discloses these findings in a summary of results from its first-ever “Millennial Money Study.” The report, a follow-up to Fidelity’s “2014 Intra-Family Generational Finance Study” polled 152 adults ages 25 to 34 who have at least one living parent.
The research shows that nearly 4 in 10 millennials (39 percent) acknowledge worrying about their financial future at least once a week or more. Women tend to be less confident than their male counterparts: 19 percent of millennial men say they never worry about their financial security, whereas only 2 percent of women say the same.
“Feeling financially ‘on their own’ about finances also could be fallout from the Great Recession, since many Gen Yers witnessed their parents and grandparents struggle with the impact of job losses, tighter budgets, and/or declining retirement accounts,” says Kristen Robinson, senior vice president, Fidelity Investments. “Whatever the reason, this generation fortunately has a big advantage — the luxury of time, as nothing is more powerful than the impact of saving early and often.”
Three quarters (76 percent) of millennials (or Gen Yers) say that starting conversations with parents about saving and investing for the future is not difficult. But almost half (49 percent) admit they don’t receive financial advice from their parents.
And 27 percent of Gen Yers tell parents nothing about money issues. Though most millennials (59 percent) view their parents as good financial role models, a “fairly sizeable number” do not, the research indicates.
The survey indicates that millennials are planning for the long-term. Nearly half (47 percent) have started saving for retirement, with 43 percent indicating they have a 401(k) and 23 percent indicating they have an IRA.