The Young and the Money

Forget about austerity. Money is back. After almost 10 years of economic stagnancy and imposed austerity people are exhausted from deprivation. The scarcity of money in the past years has given a new value to it; money is once again positively associated with happiness. In our latest Prosumer Report Money Money Money: Attitudes Toward Credit, Consumption, and Cryptocurrency, we found that 80% of Prosumers[1] would be happier if they had more money. This is true across cultures: 78% of American Prosumers agree, 78% in France, 84% in China and 84% in Brazil to state a few. Surprisingly or not, 77% of Millennials globally need more money to be happier.

Millennials have long been ‘scrutinized’ by the ad industry and by now, we can say with confidence that we know at least one thing about them: they value experiences over things. They are constantly looking for meaningfulness and when it comes to work, they’d often choose to go for a job with purpose over a well-paid salary. Which is true but up to a certain extend; because 74% of Millennials in our study also stated that their lives would be better if they had more money. On one hand, this is the most cash-stripped and debt-burdened generation. Millennials are obsessing over money because of their inability to make ends meet. A recent study by PWC on Employee’s financial wellness, found that 64% of Millennials are stressed about money, 46% find it difficult to meet their household expenses on time, while 37% also said that issues with personal finances have been a distraction at work. On the other hand, Millennials have immense curiosity and knowledge of the world, constantly looking for unique experiences. It makes sense that they need more money to live the life they aspire. These unique experiences have to be funded and they surely don’t come cheap today. The most exclusive, the simplest and most original has become the most expensive. Simplicity has become a luxury. Travelling to remote islands for the ultimate local experience, or indulging in the most natural, culinary omakase sushi needs a deep dig into the wallet. So yes, millennials want and need more money. Scarcity enhances the desire for what is missing. But beware, this does not mean we are entering an era of superficiality and mindless consumption. On the contrary, 77% of millennials admire people who are rich and live simply, while also 77% think that people obsessed with money are missing out on the true meaning of life. It is more about a life of dignity, a life well lived and full of experiences. Money has taken a more humane dimension; it’s about simplicity and sophistication. It’s about the freedom and security it offers in our lives.

How can we help Millennials improve their relation to money? What is the role of brands and companies in all this? Functioning in finance or other industries, companies should take the lead in alleviating the financial burden of young people. As employers, they should care about the financial well-being of their employees, understand and cater to their needs. Employers should inspire, motivate but also provide a fair pay, work/life balance and growth opportunities to ensure employee satisfaction and retention [2]. When it comes to money management, brands should not only help them identify and achieve financial goals but also educate, empower and make them feel smart about their choices: 66% of Millennials in our study state that spending and investing money makes them feel smart and another 64% wishes they were smarter about spending and investing money. Yet, traditional banking institutions have largely ignored the pressing needs of this group, often because of its lack of sufficient funds. As we have seen in many categories, start-ups are disrupting industries and the finance category is no exception. New products and services have emerged responding to needs that have not yet been addressed. For example, start-ups like Stash and WiseBanyan offer free products and services for small accounts, focusing on their customer’s growth and offering different styles of investing. Stash has a more active approach, with a very Millennial-oriented platform, while WiseBanyan offers a more passive tactic, evolving around life goals like retirement. Others like Elevest – the first digital advisor on investing only for women – are tapping into more specific issues. The start-up was born out of the idea that investing should not be unisex. They factor in women’s risk preferences, their lifetime salary curve and other issues relating to longer career breaks and gender pay gap.

So, what is your brand doing to help Millennials reduce their stress over money?

[1] Prosumers are today’s leading influencers and market drivers – they have been a focus of Havas studies for more than a decade. What Prosumers are doing today, mainstream consumers will likely be doing 6 to 18 months from now.

[2] Deloitte, 2016 Deloitte Millennial Survey: Winning over the next generation of leaders. https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/human-capital/ch-en-hc-millenial-survey-2016.pdf