Britain’s Millennials are positive about their financial future with six in 10 believing their financial prospects are better or the same as their parents according to new research, by the Social Market Foundation, commissioned by Tesco Bank.
The research also revealed that Millennials’ financial goals are largely traditional, with the vast majority stating that owning their own home (91%) and being financially independent (91%), alongside building rainy day savings (89%) as being their top priorities.
Millennials strive for financial independence and many are making progress towards their financial goals – 25% have built up savings and 23% own a home, however half of those surveyed report receiving regular financial support and guidance from their family. Of those receiving support, the most common forms of assistance are help for unexpected emergencies (17%), paying for accommodation (17%), utility bills (16%) and paying for necessities such as groceries and clothes (16%). The levels of assistance vary between regions with around six in 10 Millennials in London receiving support.
Of those receiving financial help, 78% expect to be financially independent by the time they are 40.
Family support runs deeper than the simple transfer of monies, parents are usually the first port of call for financial advice. The research revealed that 39% turned to their parents when making major financial decisions, while 26% consulted the internet, 20% consulted friends and 27% consulted no-one.
David McCreadie, managing director of Tesco Bank, said: “This is a compelling piece of research by the Social Market Foundation. It reveals that Millennials – while diverse in terms of income, financial support from parents, and level of savings – retain many of the hopes and aspirations of their parents. Moreover, despite the many financial challenges that Millennials face, they remain optimistic about their financial future.
“This is good news. At Tesco Bank we believe there are many reasons to be optimistic about the future, and we hope that our products can help Millennials achieve their financial goals.”
Nigel Keohane, research director at the SMF, added: “We often hear that the prospects of Millennials are bleak. This research tells a different story – with many comparing their futures favourably to the prospects of their parents at a similar age.”