Compared to older generations, millennials are more likely to be open about their finances. This fiscal transparency is an extension of the way younger adults live their lives, according to David Axelrod, a behavioral economist at Montclair State University in New Jersey, reports The Wall Street Journal.
Klarna, a Swedish fintech company, released a study in March 2020 revealing how people manage their finances across the globe. Klarna’s research found that 50% of millennials believe it is important to talk openly about finances, compared to 41% of older generations, as reported by The Wall Street Journal.
The Wall Street Journal also noted a 2019 survey from Creditcards.com, which found that millennials are also more open to talking about debt than their love life or health. In fact, 61% of millennials feel comfortable talking about credit card debt, whereas only 43% of boomers say they can be open with their friends.
“I have always suspected this is largely due to the fact that our collective experience in early adulthood is wildly different than that of boomers,” said David Weliver, publisher of MoneyUnder30. “When you can do a quick search and find thousands of blogs and forums highlighting people in very similar situations, it removes some of the shame and makes it easier to open up to friends in real life.”
The Wall Street Journal pointed out that this financial transparency is helping some millennials handle feeling that they are financially behind their peers and previous generations. Being open about money also educates them on how to manage financial situations — from budgeting, borrowing, saving and salary negotiations.
“As a generation, they’ve grown up much more willing to be open and sharing their own stories,” said Aron Levine, president of consumer banking and investments at Bank of America, reports Bloomberg. “They’re leveraging technology and open to it, and the desire to get input and feedback from peers — all of that is driving millennials across all of these financial topics.”
- Money’s Most Influential: Where Do Americans Get Their Financial Advice?
- Don’t Miss Out on Nominating Your Favorite Small Business To Be Featured on GOBankingRates — Ends May 31
- ‘Rich Dad Poor Dad’ Author Robert Kiyosaki: You Should Never Say ‘I Can’t Afford That’
- Everything You Need To Know About Taxes This Year