Chapter 14: The Psychology of Millennials
Financial Behavior: Players, Services, Products, and Markets. H. Kent Baker, Greg Filbeck, and Victor Ricciardi, editors, 241-262, New York, NY: Oxford University Press, 2017.
Posted: 7 Jun 2017
Date Written: June 1, 2017
Abstract
This chapter focuses on the financial mindset and behaviors of Millennials, and how they interact with financial advisors. Millennials have surpassed Baby Boomers as the productive generation and are projected to be the wealthiest. At 80 million strong, millennials are poised to leave their footprint on the financial services industry, which will have to adapt if it wants to engage a generation that communicates and invests differently from its forebears. Millennials are identified with unflattering and stereotypical media portrayals, but financial advisors ignore them at their peril. Advisors and service providers can engage this generation, which currently is more apt to conduct its financial and investment affairs, by ignoring the stereotypes. Millennials have a stake in the American Dream and are laying the groundwork for a secure financial future.
Keywords: behavioral finance, behavioural finance, millennials, financial advisor, financial services, stereotypes
JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41
Suggested Citation: Suggested Citation