Millennials confident about their financial future while relying on parents for financial support and advice
23 March 2017
- 6 in 10 Millennials believe their financial prospects are better or the same as their parents
- Millennials’ top three financial goals are owning a home (91%), being financially independent (91%) and building up rainy day savings (89%)
- Half of Millennials receive financial support from their parents or wider family
- Many Millennials (39%) turn to their parents and wider family for financial advice
Britain’s Millennials are positive about their financial future with 6 in 10 believing their financial prospects are better or the same as their parents according to new research, by the Social Market Foundation, commissioned by Tesco Bank. The research also revealed that Millennials’ financial goals are largely traditional, with the vast majority stating that owning their own home (91%) and being financially independent (91%), alongside building rainy day savings (89%) as being their top priorities.
Millennials strive for financial independence and many are making progress towards their financial goals – 25% have built up savings and 23% own a home, however half of those surveyed report receiving regular financial support and guidance from their family. Of those receiving support, the most common forms of assistance are help for unexpected emergencies (17%), paying for accommodation (17%), utility bills (16%) and paying for necessities such as groceries and clothes (16%). The levels of assistance vary between regions with around six in ten Millennials in London receiving support.
Of those receiving financial help, over three quarters (78%) expect to be financially independent by the time they are 40.
Family support runs deeper than the simple transfer of monies, parents are usually the first port of call for financial advice. The research revealed that nearly four in ten (39%) turned to their parents when making major financial decisions, whilst a quarter (26%) consulted the internet, a fifth (20%) consulted friends and over a quarter (27%) consulted no-one.
David McCreadie, Managing Director, Tesco Bank commented:
“This is a compelling piece of research by the Social Market Foundation. It reveals that Millennials - while diverse in terms of income, financial support from parents, and level of savings - retain many of the hopes and aspirations of their parents. Moreover, despite the many financial challenges that Millennials face, they remain optimistic about their financial future. This is good news. At Tesco Bank we believe there are many reasons to be optimistic about the future, and we hope that our products can help Millennials achieve their financial goals.”
Nigel Keohane, Research Director at the SMF, said:
“We often hear that the prospects of Millennials are bleak. This research tells a different story – with many comparing their futures favourably to the prospects of their parents at a similar age.”
For more information and media enquiries please contact:
Tesco Bank press office: +44 (0) 131 274 3630
Notes to editors:
The findings are published in the report My Money and Me: Understanding the financial challenges of Millennials, drawing on a specifically-commissioned poll by Opinium of 2,003 Millennials aged 18-34 carried out between 20 November and 7 December 2016. They key findings are also explained in the Tesco Bank Millennials and Finance Infographic.
The report was commissioned by Tesco Bank and carried out independently by the Social Market Foundation.
Four in ten (41%) agreed with the statement that ‘My financial prospects are better than my parents’ financial prospects when they were my age’, two in ten (18%) neither agreed nor disagreed; three in ten (31%) disagreed and one in ten (10%) cited ‘don’t know’.
50% regularly receive financial support from their parents or wider family. North of England (49%), Midlands (49%), London (62%), South and East (46%), Wales (46%), Scotland (52%), Northern Ireland (37%).
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ
About the Social Market Foundation:
The Social Market Foundation (SMF) is an independent, non-partisan think tank. We believe that fair markets, complemented by open public services, increase prosperity and help people to live well. We conduct research and run events looking at a wide range of economic and social policy areas, focusing on economic prosperity, public services and consumer markets. The SMF is resolutely independent, and the range of backgrounds and opinions among our staff, trustees and advisory board reflects this. www.smf.co.uk
For further details please contact Mercedes Broadbent, SMF communications manager on firstname.lastname@example.org