Millennials are at a financial crossroads and FI’s must understand their mindset
Now entering their early forties, millennials are increasingly focused on financial security. Their financial outlook is shaped by the economic challenges they've experienced throughout their lifetimes. This tech-savvy generation embraces digital tools but still values personalized financial advice, especially during uncertain times. As they prioritize retirement planning and financial management, millennials look to both financial institutions and employers for support. To engage this generation, companies must understand their unique needs, leverage technology and offer tailored advice and products.
Millennials — America’s largest generation with approximately 72.24 million members — have a unique financial mindset. Although we have seen them historically lag behind other older generations in reaching traditional financial milestones like buying a house and saving for retirement, they are entering a phase of future planning — and it’s time to pay attention. As the oldest millennials enter their early forties, our Logica® Future of Money Study shows they are focusing on taking charge of their finances in different ways than previous generations.
According to Wealth Management, millennials are laser-focused on financial security. They have lived through multiple periods of huge upheaval, like the 2008 financial crisis, the pandemic, tech crashes in 2022 and a long period of inflation more recently. Using the right consumer research, companies can truly engage millennials with the right financial products and services. Understanding their unique experiences and evolving priorities, demonstrating empathy and adaptability, and leading with millennials’ tech-forward preferences will be key in reaching them.
Technology’s rising role with millennials and money
Millennials are well-informed and tech-savvy investors — changing and emerging technologies are significantly impacting the future of money among this generation. Our study shows that 29% of Americans from all generations believe technology will have the biggest impact on investing in the next five years. Millennials, in particular, have a strong focus on technology and investing, with significant growth in crypto investment interest (increasing from 49% to 64% year over year). Millennials are very comfortable using technology for investing strategies, including using robo-advisors, taking advantage of online brokerages and utilizing AI — as well as this increasing investment in cryptocurrency.
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