London, UK, 21st January 2016: It appears the Millennial generation has learnt from the experiences of those that preceded them when it comes to their finances. The findings from Experian’s “Millennial Me & My Money” report show that 45% of Millennials (18-34 year olds) manage to save at least a quarter of their disposable income each month, compared to just a third (34%) of 35-55-year-olds (Generation X).
Not only that, but Millennials who believe their parents have had a positive influence on their money habits have almost double the savings of those who say their parents had a negative influence.
Likewise, those who have benefitted from their parents’ financial experiences are savvier when it comes to managing credit. This is likely to stand them in good stead for the future; helping them access better rates on borrowing which could save them a considerable amount of money when it comes to big purchases later in life.
The research shows that Millennials who say their parents have had a negative influence on their money management are:
Commenting on the research, Clive Lawson, Managing Director at Experian said: “It’s striking to see just how much of an impact parental influence can have on the financial wellbeing of Millennials in adulthood. What this research made clear to me was the opportunity that we as parents have to set foundations by helping our children learn from both our experiences and our mistakes in managing money, and enjoy the advantages that might bring them later in life.
“As it stands, it appears that Millennials already surpass older generations when it comes to money management and this is good to see; however, there are still a few lessons to be learnt. Many are still making crucial errors in the way the manage credit and these mistakes, such as not even checking their own credit report can have far-reaching effects on their financial future. There was also a surprising apathy shown towards seeking value by shopping around which was is consistent with older generations.”
Key highlights from Experian’s ‘Millennial Me & My Money’ insight report:
Nature vs. Nurture:
Millennials as Consumers:
Common financial pitfalls:
The Role of Technology:
Looking to the Future:
Understanding how to manage credit well is a common pitfall that many Millennials have struggled with, and one that could impact them in later life, and so Experian has developed a series of guides available at www.experian.co.uk/improve. The guides have been designed to help people understand the credit referencing process, and how they can maintain or improve their credit rating.
Notes to editors:
Methodology: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2028 adults aged 18 to 34 (Millennials) and 2047 adults aged 35 to 55 (Generation X). Fieldwork was undertaken between 17th - 28th December 2015. The survey was carried out online. The figures have been weighted and are representative of 18 to 34 GB adults and 35 to 55 GB adults.