Don’t worry so much about millennials: A new survey suggests they’re probably worried enough about themselves.
In a study of more than 1,000 millennials, only 24 percent could demonstrate basic financial literacy, and just 8 percent displayed high levels of financial literacy.
Many millennials acknowledge their lack of financial literacy, with men more aware of their shortcomings than women, according to the survey, which was sponsored by Chicago-based BMO Wealth Management. While 37 percent of the male respondents said that they were concerned about their lack of financial literacy, only 29 percent of the female respondents said the same.
When asked about which personal matter concerns them the most, 65 percent of the millennials surveyed by BMO said their current financial situation.
Finances ranked as the most cited concern for millennials, topping personal relationships, job insecurity and living situation.
While one-quarter of the respondents were concerned about their ability to fund a retirement, only 10 percent named retirement saving as a top priority. The highest financial priorities for millennials revolved around debt management and lifestyle: 25 percent of the respondents said paying down debt, 17 percent said finding meaningful or better paying work, and 14 percent said purchasing or upgrading their home.
More than one-third of the respondents thought that retirement was too far off to be a priority. Another 22 percent of respondents said that they would rather pay off their accumulated debts before saving for their retirement.
The report also concluded that millennials tend to be conservative savers, more likely to stash money away in a savings account than an IRA, 401(k) or Roth account.
BMO concluded that millennials, while grading poor in financial know-how, are in a position to improve since they are highly educated and digitally savvy enough to improve their financial knowledge on their own.
The report was based on a survey of 1,006 millennials in April.