For years, millennials have been labeled the “broke and behind generation,” blamed for everything from skipping homeownership to spending too much money on avocado toast. But new research suggests that narrative may be overdue for an update.
A new national study from Chime surveyed 3,000 Americans across three generations and found that nearly half of millennials say they are better off financially than they were five years ago, the highest rate of any generation surveyed.
Financial expert and Certified Financial Planner Brittney Castro joined Sierra Waggoner on We Are Austin to break down the findings from the Chime Millennial Money Report: Meme vs. Math and explain what the data reveals about how millennials actually view their financial lives.
The report challenges several long held assumptions about the generation. While millennials have often been portrayed as having given up on traditional milestones like homeownership, marriage and having children, the study found that millennials are still pursuing many of those goals.
The difference may be in how and when they approach them.
The report also highlights a major divide within the millennial generation based on whether someone came of age during the 2008 recession. That experience shaped how many millennials learned to think about money, financial security and long term planning.
And while social media can make it appear as though everyone else is getting ahead, the research found a significant gap between how millennials look financially and how they actually feel.
Forty one percent of millennials say their financial reality does not match how their life looks to other people.
That disconnect can make it difficult to know whether you’re actually behind or simply comparing your real life to someone else’s highlight reel.
The study also found that 84 percent of millennials say they experienced a financial mindset shift in their 30s, reflecting a growing focus on financial stability, long term goals and taking control of their money.
Rather than measuring success solely through traditional markers like owning a large home or building a massive investment portfolio, the report suggests millennials are creating a different definition of financial success.
For many, financial security is increasingly connected to being able to take care of the people they love and having the freedom to make choices that align with their priorities.
The research also points to a generation that has become increasingly hands on with its finances. Many millennials have had to teach themselves about taxes, insurance, retirement planning and salary negotiation, while more than eight in ten actively manage their money using at least one financial tool.
For millennials who still feel like they’re behind, Castro’s advice is to focus less on the comparison and more on taking one practical step toward greater control of their finances.
The larger message from the report is that financial success does not have to follow the timeline previous generations established. Millennials may be taking a different path, but the data suggests they are making progress on their own terms.
For more information and to read the Chime Millennial Money Report: Meme vs. Math, visit chime.com/millenealmoneyreport!