Managing money with a millennial mindset

Millennials manage their money differently than their parents do. The 2008 financial crash shook their confidence in traditional systems, and as a result they carefully research their options. Furthermore, the rise in popularity of social media means that this cohort is heavily influenced by online social networks. Read on to learn how millennials seek advice, and what that means for those serving them.

In a 2015 interview with Forbes, Donna Sabino, an expert in advertising sales research, said that millennials are managing their finances in their own way. “They have their own tools and their own rules, and the traditional legacy schema that we’ve set up for doing things in certain institutional sectors doesn’t really matter to them,” she explained.

Indeed, in its 2016 Millennials + Money: The Unfiltered Journey study, Facebook found that millennials are 1.4 times more likely than their parents to switch financial institutions. But that doesn’t mean they’re a lost cause. That same research revealed that 60 per cent of millennials want their bank to be a partner or friend in their journey to financial success. In other words, millennials want help managing their money.

So where do they turn first for help? Like so much of the rest of their life, their money management is heavily influenced by social media. Young people trust their online social networks and turn to them for financial information, and unlike those who came before them, this generation doesn’t consider money matters to be private. In fact, according to the 2015 Winning Affluent Millennials study conducted by LinkedIn and Ipsos, a whopping 90 per cent of affluent millennials look for opinions and comments about financial markets and events on social media, whereas slightly more than half of affluent Gen Xers do the same. Similarly, 84 per cent of affluent millennials look at customer reviews of financial products and services on social networks.

The big takeaway is that millennials are hungry for information and help: they want to research and make informed decisions, and REALTORS®, lenders and brokers can help them in their quest.

According to the LinkedIn and Ipsos research, not only do affluent millennials “seek out financial content, particularly through their social networks, including customer reviews,” but they also look to social media for “expert opinions, educational articles and literature on products and services.” This means it’s important for everyone in the financial and real estate sectors to be active on social media. Without a social media presence that includes reviews and information for customers, REALTORS®, lenders and brokers risk missing out on the millennial market.

Show them they can