Headline: A millionaire at 20! Reading news about individuals hitting it big at a young age is no longer unusual. People born between the years 1982 and 2004 are branded as the millennials.
Their population came after Generation-X and in terms of numbers, has the earned the distinction of being the biggest generation in America today. This honor was previously held by the Baby Boomers.
Also known as Generation Y, the millennials greeted the dawn of the 21st century or the new millennium. They dominate the internet universe and the digital realm. The growing number of start-up companies dwelling on technology and other innovative tech applications is a sign the landscape is changing. The millennials are at the gates of the financials market.
Since millennials are perpetually wired to the World Wide Web, Mark Zuckerberg of Facebook fame is obviously the runaway role model. Imagine how Mr. Zuckerberg’s staggering net-worth can dwarf the economies of many countries.
Luck and perfect timing can be attributed to the success of famous millennials without intending to belittle their extraordinary talents. However, a greater number of millennials is still locked in struggle, consumed by a desire to find their individual niche.
Key distinguishing factors of this demographic group are their unique preferences in lifestyle, spending, and personal finance. Is salary the primary consideration for employment? The generation is divided.
Millennials are the offspring of the baby boomers and the Gen-X who are both money conscious. Whereas their parents have financial wisdom and experience, the Gen-Y needs guidance and direction in financial planning.
However, some interesting facts came out from a recent survey sponsored by Fidelity Investment on the topic of Millennial Money Study. The results are quite interesting.
The survey was taken from July 27 to August 2, 2016, with 615 adult respondents. Of the total, 49.5% or 305 were millennials ages 25-35. The sample size may not be large but the survey results give you a glimpse of Gen-Y’s monetary awareness.
Wealth managers, financial advisors or stockbrokers can take the cue from the survey results. The younger millennials maybe a little short on cash at the moment, but those with steady income stream are savers.
Looking at the stock market as an investment option, perhaps there are two main roadblocks for the millennial: 1) they do not want to be turned away because of insufficient funds to meet the minimum requirement; and 2) the lack of market knowledge.
The Gen-Y thinks they can take their time unaware that investing early is the way to increase wealth. Establish the urgency and harp on the fact that despite the volatility, stocks have outperformed cash and bonds based on historical performance.
Wait until the millennials get the drift on investments. But once they do and with their accumulated capital on hand, they will be the next high-net-worth individuals. Open the gates, the gang’s all here.