Millennials have financial goals but they don’t have any plan to attain them. 85% of the millennials are sure they will achieve their American Dream but only 49% of them have a plan to fulfill it.
Before I dig deep into the subject, let us first talk about the big American Dream. What is the ultimate American Dream? Well, the dream is to pay off debts, buy a home and retire someday from a good job.
The American Dream of millennials is quite traditional and it isn’t surprising. But their dream is not completely similar to what baby boomers pursued. Millennials dream is different from baby boomers because time has changed.
Millennials want to buy their dream abode and give a good lifestyle to their families. But they don’t have a strong drive to settle down like the baby boomers. Millennials are confident people. They are well-informed, thanks to globalization and the Internet. They are qualified. So, they are confident about getting a good job later. As such, they don’t have any rush to build their nest-egg.
Millennials want to enjoy life. They want to explore various parts of the world. They want to set up their business and flourish in their work life before following the footsteps of their earlier generations.
The lack of financial planning is just not because millennials are postponing a few things in life. Several millennials wish to save for the golden years of their life but financial planners won’t speak with them because of their high net worth minimums.
There is yet another reason why millennials are unsure about how to handle their finances. Time has changed. The average age of a financial advisor is 55 years. The factors that affected their generation is different from today, especially with regards to credit card debt and student loans. Quite obviously, millennials don’t know how to manage their finances - should they aggressively repay their student loans or should they save for retirement or should they try to balance both the things?
Millennials want to walk on a clear path. They want more transparency. This is probably why financial advisors are first helping them to chalk out their goal. Once the goal is set, financial advisors are helping them to attain their goals.
Millennials have a different opinion on this subject. They don’t usually save the way it’s usually done and there is a logic behind it. Millennials are confident that their earning potential will increase with time. They have more access to information, thanks to the Internet; and as they age, they hone their skills. Knowledge and skill can help them to get a six figure salary and promotions. They can even quit conventional jobs and set up their own business. They don’t need a retirement account as a protection.
As per the financial experts, millennials are redefining the American Dream. They are not ready to compromise or do any bad work for achieving their dream. They don’t have any patience and want instant gratification. If they become patient and make the right financial moves, then they’ll surely attain their American Dream. But the million dollar question is, can millennials learn to be patient? This is yet another different story.