Want to grow your business? Millennials are the answer.
The millennial generation, born between 1981 and 1996, might not be the first group you think of when it comes to financial wealth, but research from the Pew Research Center shows that they’re now the largest generation employed in the workforce – even more than baby boomers and Generation X.
Millennials, like every other age group you serve, have their own unique needs and challenges. While still relatively young, millennials need help growing their savings and planning for the future with the right life insurance and retirement products.
Here are seven key things you should know about millennials that may help you grow their wealth, all while building a better business for yourself.
1. Millennials have a lot of student debt
Education isn’t cheap, and while millennials are incredibly educated, they are burdened by a high amount of student debt. According to the Federal Reserve Bank of New York Consumer Credit Panel/Equifax, national student loan debt reached $1.48 trillion in 2019. As of 2018, those under the age of 39 had a total of $844.8 billion of student loan debt. They will be looking to you to help them get out of debt with smart financial strategies.
2. Millennials want full transparency on fees
Some financial planners only disclose their fees after meeting with a client, but millennials favor upfront pricing. Most of them want full transparency and want to know what they’ll be paying before scheduling a consultation. For example, millennials are more likely to be more aware of their brokerage account fees, studies show. Consider being upfront with them about your pricing, perhaps by making your rates clearly visible on your website. Then, you can spend your time together talking about their finances, not your costs.
3. Millennials like convenience
Providing convenience can go a long way to keeping millennial clients happy. Don’t make them go to multiple places for information and guidance. Provide comprehensive services and give them advice across the board, from buying a home to paying off student loans. You’ll make yourself indispensable in the process.
4. Millennials like to spend
Generally speaking, millennials spend more money than previous generations, research shows, especially when it comes to short-term, discretionary pleasures, like dining out and vacation travel. Help them with budgeting so they can afford to have fun, but also teach them why saving, especially for retirement, is a good idea.
5. Online communication is key
Millennials live life on the go and aren’t going to want to come and sit in your office. Even a phone call might be considered archaic. To better serve them, provide chat services and virtual meetings. You might even want to create or offer an app that will help them manage their money and investments on the go.
6. Millennials are stressed
Everyone is stressed, but millennials are particularly struggling to find peace of mind. In fact, more than half of millennials admit to having a sleepless night because of stress, and the American Psychological Association (APA) says that 12 percent of millennials suffer from an anxiety disorder, twice the percentage of baby boomers. Helping millennials reduce their mental and financial stress will go a long way in easing their overall anxiety.
7. Millennials like socially responsible investing
Millennials are big fans of socially responsible investing (SRI), which seeks to incorporate financial return and social and environmental good with the overall goal of sparking positive social change. In fact, Americans in their 20s and 30s are twice as likely as the overall investor population to put their money in companies targeting SRIs, according to Morgan Stanley’s Institute for Sustainable Investing’s “2017 Sustainable Signals” report. Keep this in mind when offering investment recommendations; you’ll be making your clients happy, while helping them better the world.
Want more information on the millennial generation? Here’s advice on how to convince millennials that they need a financial professional, and additional tips on how to make sure you’re prepared for the future technology demands of your clients.
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