America’s potential young homebuyers lack confidence in their finances and have more pressing concerns than saving for a downpayment
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America’s potential young homebuyers lack confidence in their finances and have more pressing concerns than saving for a downpayment.
A survey of millennials by Mintel found that 51% say they are confident in their knowledge of financial services with 35% considering their finances to be ‘healthy’ and a further 38% ranking them ‘ok’.
Respondents were optimistic about the future – 51% said so – but their biggest financial concerns do not focus on homeownership. Highest on the list is saving for emergencies (33%) followed by paying day-to-day bills (28%) and paying off credit card debt (28%).
The research suggests that owning things (including a home) may be a lower priority than having experiences for millennials.
“We’re seeing a trend with Millennials limiting the number of things they own and, at the same time, increasing the quality of what they spend their money on,” said Jennifer White Boehm, Associate Director of Financial Services at Mintel.
There is also evidence that mortgage brokers and other financial advisors have some challenges in reaching younger Americans. A third get financial advice from friends or family, 20% use social media and just 17% said they ask financial professionals.
“As Millennials continue on their financial journey, reaching this group will require going beyond generational marketing in order to target these consumers within their specific life stages,” said Boehm.
“The Millennial stereotype that this generation prefers ‘craft’ or ‘small-batch’ products persists even in financial services, creating an opportunity for non-traditional and smaller brands to step in and fill a need with these younger consumers,” she added.
A survey of millennials by Mintel found that 51% say they are confident in their knowledge of financial services with 35% considering their finances to be ‘healthy’ and a further 38% ranking them ‘ok’.
Respondents were optimistic about the future – 51% said so – but their biggest financial concerns do not focus on homeownership. Highest on the list is saving for emergencies (33%) followed by paying day-to-day bills (28%) and paying off credit card debt (28%).
The research suggests that owning things (including a home) may be a lower priority than having experiences for millennials.
“We’re seeing a trend with Millennials limiting the number of things they own and, at the same time, increasing the quality of what they spend their money on,” said Jennifer White Boehm, Associate Director of Financial Services at Mintel.
There is also evidence that mortgage brokers and other financial advisors have some challenges in reaching younger Americans. A third get financial advice from friends or family, 20% use social media and just 17% said they ask financial professionals.
“As Millennials continue on their financial journey, reaching this group will require going beyond generational marketing in order to target these consumers within their specific life stages,” said Boehm.
“The Millennial stereotype that this generation prefers ‘craft’ or ‘small-batch’ products persists even in financial services, creating an opportunity for non-traditional and smaller brands to step in and fill a need with these younger consumers,” she added.
