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A recent study found that as Singapore’s millennials plan for their financial futures, they have grave concerns about how to proceed. Researchers asked working adults between the ages of 16 and 29 about what they do now to prepare for a secure financial future and what they would like to do but have not and why not. This is what they found.
Money Is Not a Top Motivator
Although many in the study expressed a desire to plan for their financial futures, money was not their first priority.
The study found that less than half of the respondents placed a great emphasis on owning physical property. A much higher portion, 77 percent, said it was important to find ways to give back to their communities.
Another top concern was not their own retirement, but that of their parents. They also placed a heavy emphasis on determining the environmental impact of the products they purchase.
However, although prioritizing people and the environment over money, the study found that millennials also worried about their own financial futures.
As they get more settled in their careers and lives, they may be more likely to consider contacting a professional agency, such as asset planning firm Asiaciti Trust, to help with wealth management.
Millennials Would Invest if They Only Knew How
A vast majority of Singapore’s millennials said they wanted to start investing, but did not consider themselves knowledgeable enough to take the plunge. They also expressed a desire to purchase insurance but again felt they didn’t know enough to purchase the right policies.
Clearly, a lack of confidence in their own abilities to effectively invest and choose the right insurance keeps many millennials from doing either one.
Spending and Saving
Millennials expressed a lot more confidence in their abilities to save money and manage expenses. A 67 percent majority said they have a budget and 66 percent say they managed to stick to it.
Savings plans were also popular with millennials, but 41 percent admitted they struggled sticking to those plans.
A Job Is More Than a Place to Go Everyday
When asked about employment, 83 percent of respondents stated their goal was to find a secure job with a regular income. But, a high-paying job did not make it into the top three priorities as they pursued their ideal job.
Singapore’s millennials listed these top three job qualities in order of importance:
- Millennials said an ideal job comes with a fair work-life balance.
- Millennials placed great emphasis on positive workplace culture.
- Young adults in the study said they want to work at something they are passionate about.
Millennials also said it was important that employers adapt to the needs of employees.
Money was not far from their minds, however. After finding the right job with a regular income, 69 percent said their next goal was to invest for the future and purchase insurance for added security.
Personal Interests and Life Goals
Marriage and family were on the radar with millennials, but not right away. Most respondents said they would only consider marriage when they had a stable career. They also said that when they do marry, the wedding will be a small, low-cost affair.
In addition to personal life goals, the majority of millennials said their most important social concerns include reducing poverty, helping the elderly, advancing human rights and improving the environment.
The Different Millennial Personality Types
Study respondents fell into four financial personality groups. The largest group at 35 percent were strivers. Strivers expressed a need to control investments with advancement in mind but were not sure how to start.
Approximately 23 percent of the respondents fell into the security seekers category. This group viewed financial security now and in the future desirable, but felt they needed more help when it came to basic financial planning.
Another 22 percent were social givers. Social givers placed more emphasis on helping others and social causes but said they lacked the knowledge to meet these goals.
The last and smallest group was the nonchalant personality. This group was lax about managing their personal finances and did not feel planning was a priority.
Meeting the Financial Goals of Millennials
The study revealed a crucial fact — millennials would do more to secure their financial futures if they only knew how.
Clearly, financial education is key. Universities, financial institutions and communities need to come together to fill the knowledge void. Armed with the tools to make smart investments and sound decisions, millennials become well-equipped to take Singapore into the future.
