TD Bank Financial Education

Transcription

1 TD Bank Financial Education March

2 Overview Financial Education survey is focused on financial advice and I ve Made it moments across the 4 generations Gen Z, Millennial, Gen X and Boomers. Methodology In total 1109 surveys were gathered: Gen Z 200 Millennial 304 Gen X 300 Boomer Data has been weighted by gender and region to reflect each population. The survey was fielded March 18 th 24 th Margin of Error ( Population): 2. This report presents the findings in summary charts and tables. The statistical cross-tabulations are reported under separate cover. 2

3 Financial Advice The top financial topic people need the most advice on is Investing. Many Gen Z s are looking for advice on Saving and Budgeting, while the older generations look for advice on Retirement. Gen Z rely on parents for advice, while Millennials start to balance parental advice with their own exploration and network. Most Needed Advice Investing 31% Paying off debt Retiring Saving Budgeting 2 Buying a home 1 Person Relied on Most Financial Advisor 21% Parents The Internet Spouse 1 1 Friends 1% Colleagues 1% 1% 1% Don't rely on anyone 31% Q2. If you had to choose one, which financial topic do you need the most advice on? Q3. Who do you most often rely on for financial advice? 3

4 Financial Learning Overall, one third have taken a class on Personal Finance - 4 of Millennials. Almost 90% of Gen Z who have not take a class on personal finance already wish they had. Take a Class on Personal Finance? % 60% 31% 6 Among those Never Taken a Class Wish they Had! % Q4. Have you ever taken a class, in high school or college, on personal finance, such as how to create a personal budget or how to pay your taxes? Q5. If you never received a class on personal finance in high school or college, do you wish you had? 4

5 Feeling Like You ve Made it While many moments can make people feel like they ve made it, floating to the top for most is being debt free, owning a house and having some emergency savings. Gen Z are focused on their career and school. Interestingly, as Gen Z may focus on education themselves they are conscious of their children's education. What Would Make /Has Made You Feel Like You ve Made it Being debt free 61% Owning a house Having savings to cover emergency Being able to invest Starting my dream job/career 30% % 1 Put my children through college % 2 Graduating college/university % 2 2 Making six figures Q6. Which of the options below would make you / has made you feel like you ve made it in life? 5

6 Financial Frustrations / Barriers While frustrations ease with age, the day-to-day, living paycheck-to-paycheck is the biggest frustration that keeps or has kept people from their goals. Gen Z are equally frustrated by debt. Barriers to Goals Living paycheck to paycheck 3 30% Don't fully understand what steps to take 2 1 Fear of not being able to make monthly payments 1 I just don't have the time to research the right way to achieve my goals The stress of repaying other debt first (credit cards, student loans, etc.) ne of the above 2 21% 4 Q7. When thinking about making it which of the financial frustrations below do you believe most keeps you, or has kept you, from your goal? 6

7 Feeling Like You ve Made it Millennials are the most confident in feeling that they have the financial skills to make it and half feel its important to do so before their friends. Strongly Agree Somewhat Agree Neither Somewhat Disagree Strongly Disagree I feel confident that I have the personal finance skills needed to make it in life. 70% % % Is it Important to Feel You ve Made it Before Friends 2 31% % 90% Q10. [I feel confident that I have the personal finance skills needed to make it in life.] How strongly do you agree or disagree with the following statement Q11. Is it important for you to feel that you made it before your friends do? 7

8 Most Significant Made it Moment For Millennials, Gen X and Boomers the most significant Made it moment is family related. Becoming independent, Gen Z focus in on their career. Don t spend what you don t have has been the best tip for most. For Gen Z it s go to school. MOST SIGNIFICANT Made it Moment is Family related 3 20% Financially related (amount saved or invested, paid off debt, etc.) Career related (title, position, salary, etc.) 20% 4 20% 1 Material related (house, car, clothes, etc.) Other Best Tip of Piece of Financial Advice Don't spend what you don't have Make a budget Buy a house instead of renting Start saving in your 20s 1 1 Don't take on too much debt 1 Go to school Start investing in your 20s Which of the following statements best finishes this sentence for you My MOST SIGNIFICANT made it moment is 13. Thinking about your MOST SIGNIFICANT made it" moment, what is the best tip or piece of financial advice that you have been given? 8

9 Looking Back: Advice While saving and investing falls behind when thinking about the best tip or advice received it floats to the top if Gen X and Boomers could talk to their younger selves. Gen X One Piece of Advice Would Give Younger Self Boomer Start saving in your 20s % Start investing in your 20s 20% 20% 21% Don't spend what you don't have Don't take on too much debt 1 Make a budget Go to school Buy a house instead of renting 1% Pay down debt first Q14. w we would like you to think back to your 20s -what is the one piece of financial advice you would give your younger self? 9

10 Looking Back: Priorities Looking back, marriage and family can wait. Saving and investing should not. Just Wait, there is no rush to Gen X Boomer Get married 3 31% 3 Start a family % Travel and see the world 1 1 Start saving or investing Move out Buy a home Start a career Gen X Start w, don t wait to Boomer Start saving or investing Start a career 1 Travel and see the world Buy a home Get married Move out Start a family 15. Thinking of yourself in your 20s, how would you finish each of the following sentences? Just wait, there is no rush to. Start now, don t wait to.. 10

11 8. If you currently have or have had debt, do you believe the debt has impacted your progress toward "making it? 9. If you currently have or have had debt, which of the below have you done to manage debt? Debt & Debt Management Over 60% of Millennials and Gen X feel debt has impacted their progress towards making it. Most tackle debt one at a time. Millennials are more likely to consolidate their debt to manage it. Has Debt Impacted Progress Towards Making it, Impacted, t Impacted Debt % 50% % Have / Have Had Debt Efforts to Manage Debt Paid/paying it off one debt at a time Consolidated my debt to pay it off 21% 3 21% 1 Borrowed money from family/friends to pay debt ne of the above %

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