The age demographic that now represents the largest percentage of the workforce doesn’t feel confident about its saving and investing habits. That’s the conclusion of PNC Investments’ Millennials & Investing Survey.
Respondents, who were ages 21 to 35 with investable assets of $5,000 or more or those who had a qualified retirement plan and at least $1,000 in investable assets, said they learned at a young age about saving money but did not receive as much guidance from their parents about building wealth through investing.
While almost two-thirds of the responders reported that their parents always encouraged them to save money while they were children, only half said their family modeled good money management and even fewer credited their parents for showing them ways to grow wealth beyond having a job.
And more than half of the millennials surveyed said they did not have an emergency fund.
After reviewing the survey report, Chris George, PNC’s regional manager in Wilmington, talked with his own millennial children, his new son-in law and their friends.
“I do agree with some of the information [in the survey],” he said. “We talk a lot about savings; maybe not so much on the investment side. But they are very interested in knowing and gaining more knowledge around investments.
“They want to put money away. I think that the millennials I have talked to are trying. If somebody can save 10 percent, that seems doable. If you do that early and build a habit of saving, you are going to be in a pretty good position later in life at retirement age.”
Millennials, George says, are interested in learning more about investments.
As for saving, George’s advice is to first establish a savings account and form a savings habit, depositing a percent of income on a regular basis. Second, create an emergency fund, with a goal of having enough to cover three to six months of expenses. Third, become informed about long-term savings.