With the new year, many of us are thinking about our financial goals and how to achieve financial wellness. In a new study commissioned by Affirm and conducted by OnePoll, 2,000 Americans, split evenly by generation, were polled about how they view their finances. The study showed that Millennials are more concerned about money than any other generations. In fact, they’re worrying about money, on average, about seven times a day. This is more than the other generations combined, which showed that the average American worries about money approximately six times each day.
The research revealed that six out of 10 believe the pandemic has made younger generations smarter about their finances than older generations. As a result, Millennials are the most optimistic (78 percent) about their financial futures and where their finances will be in 10 years, while Boomers were the least optimistic (57 percent).
Despite worrying more, Millennials were the most confident about their finances (79 percent) followed by Gen X (71 percent), Boomers (65 percent), and Gen Z (57 percent). Interestingly, Millennials (51 percent) reported the number-one quality they look for in a romantic partner is the ability to manage one’s finances. For other generations, a sense of humor was considered the top quality. An aptitude for managing finances and financial stability were even rated more highly than appearance. Illustrating the importance of financial wellness in a relationship, 68 percent said they’d consider breaking up with someone if they managed their finances poorly.
“With 40 percent of Millennials agreeing credit card debt is their biggest financial setback, it’s no surprise that we’re seeing this group embrace more modern, flexible payment options,” says Silvija Martincevic, chief commercial officer at Affirm. “Over half, 56 percent, of all respondents are interested in using a buy now, pay later solution in 2022, and nearly three quarters, 72 percent of Millennials agreed they’d rather use one than a credit card.”
While overspending is a primary concern for most generations, the most harmful habit that threatens an individual’s budget is succumbing to impulse purchases (41 percent), ordering takeout (38 percent), going out with friends (34 percent), and being subject to late fees (34 percent).
Unfortunately, money remains a top source of anxiety for many Americans regardless of their generation, so much so that the survey revealed that 43 percent of respondents would give up drinking alcohol for five years if they could retire today, 30 percent would give up sex, and 29 percent would give up their friends. Financial freedom is certainly the goal of many Americans.
