The Truth About Finance Content for Millennials

It’s no secret: Millennials have it rough. With an average salary just shy of $36,000 and 300% more student loan debt than their parents, convincing them to invest in insurance or retirement can seem impossible.

But it’s not.

As a millennial, a copywriter, and a personal finance nerd, I find articles every day that completely miss the mark.

The biggest problem? Most brands out there seem confused about who the average millennial is and what their challenges are.

Profile Summary: Who Is the Average Millennial?

The easy answer: A millennial is anyone born between 1981-1996. This means right now this group covers ages of 23 to 38.

I don’t have you tell you that these are prime years for wealth building, purchasing insurance, and significant milestones like marriage or buying a house. This period is crucial for success in later years.

But millennials have a unique set of challenges. Here are the primary considerations we need to look at:

• Millennials were old enough to experience the recession of 2008.
• 4.23% of millennials, or 5.3 million people, live in poverty.
• But poverty levels are defined as $21,330 for a family of four.
• Their average salary is just under $36,000.
• Only 35% own a home.
• Student debt alone is over $1 trillion.
• Wages have stagnated over the past forty years for most workers.

Okay, so what does it all mean? If less than 4% of millennials are in poverty, there must be a ton of prospects out there, right?

Yes and no.

Despite the low level of poverty, the combination of student loan debt and stagnating wages have made it difficult for millennials to save. Let’s look at that poverty wage for a family of four: $21,330.

This number is a threshold. It’s meant to represent the minimum you can live on. And while the census says it adjusts for inflation, it’s still too low.

Seeing the Big Financial Picture

In this article by Kiplinger, Harlingen, Texas should be the cheapest US city to live in.

When I cross-referenced this with data from Living Wage, Best Places, and PayScale, we find you need a pre-tax income of $57,495 to make it as a four-person family. Yet, you’ll discover salaries as low as $20,173 in the area, which is $100 short of a living wage for a single-person household!

Think about this: The median rent in Harlingen is $735 a month. If you’re right on the poverty line, almost half of your annual salary goes toward rent.

The most affordable housing is a $250 studio, which is n option only if you live alone. The poverty line for a single person household is $12,490, so rent would make up 24% of your annual budget. Assuming you are earning $20k after taxes as a single person household, you're in the clear - unless you have an immense amount of debt and the remaining sum covers health insurance, car insurance, gas, food, laundry, and other necessities.

When we look at the data through this lens, we can see that millions of millennials are living on the edge of a downward spiral.

If millennials are swiping left your finance brand, it might be that your content hasn’t connected with their primary pain point: How to save and advance on a low salary.

Despite these hurdles, there are some silver linings. We know:

• More millennials are saving more often than their parents. 81% say they saving in some way.
• 67% of millennials are meeting their savings goals almost every month.
• Referrals influence the buying decisions of about 50 percent of millennials.

Millennials care about saving and finance. But with long hours and low wages, it can be hard to set aside time and assets to invest in the future.

Now that we know more about the challenges, let’s talk about creating finance content for millennials.

Finance Content for Millennials: Divide and Empower

You know those articles about how millennials are killing X industry? Or that selling their parent’s gift of a condo and car paid off a 20-something’s student debt? Ditch these ideas. Or at least reduce them.

These articles aren’t terrible. But they are overdone and are not a good representative of many millennial households. And as a millennial myself, with many millennial friends, I seem these posts passed around with repulsion. Not all sharing is good sharing.

Instead, your brand should consider first dividing the generation into three brackets assuming a family of two-to-four:

1) Poverty or near-poverty level (Income 25k and below)

2) Just making it (Income 25k-50k)

3) Nice and cushy (Income 60k+)

Maybe your brand wants to focus only on groups two and three, but I wager you’ll lose trust if you don’t at least try to cover group one. Almost all of us have worked a minimum wage job and understand the implications of a low salary and long hours, even if we haven’t experienced abject poverty.

Your finance content doesn’t always have to sell. Empowering content like “How to negotiate your salary” or “How to save for retirement with a 20k income” can create trust. Being real shows millennials you really get us. And as more millennials move from group one to group two, they’ll put their money with the brand they trust.

Who does it well: Avant’s blog does a great job of providing relevant, cost-effective advice outside of their direct product line, from couponing to budgeting with pets.

Curb Fear and Hesitation

Millennials have lived through wars, terrorism, and are expecting global catastrophe. Why buy a house when the planet is dying?

Yeah, it can get dark. But we also love hope.

It’s critical that finance brands highlight the short-term and long-term positives of saving and insurance. Who are you helping? How will these investments help you and those you love to live your best life?

Who does it well: Morgan Stanley did a great job with this article on sustainable investing. Finding ways finance can solve personal and social problems really works!

Stay Simple and Focus on Self-Improvement

Millennials may be working more than one job. Or maybe they’re working a 12-hour shift. Or they’re working and taking care of two kids. Life is busy.

In a fast-paced world, convenience is vital. Make content easy to find and make your products even easier to evaluate.

Comparison charts, infographics, polls, and short case studies are great ways to highlight what works without being a complete time-drain. And they are fun to share with friends and family who want their finance questions answered.

Who does it well: Haven Life. While they also post about their products, they also post various short articles on being healthier and making career switches. Because they are concise, relevant, and focused on personal growth, they do a great job of creating trust!

Summing It Up

So what is the secret sauce for creating successful finance content for millennials? Empathy!

But empathetic content isn’t just great for your bottom line. The value it provides can make a real difference by helping others better save, invest, and protect their families. Through valuable content that addresses current economic woes and the individual’s desire for a better future, you can lead the way to a more financially secure community.