How Millennials View Wealth: Financial Perspectives of a New Generation

From short-term objectives to technology’s impact, Millennials have various factors to consider when planning their financial futures. In a world dominated by high-speed internet and quick access to information, Millennials also expect their investment details to be readily available.

One-click access to online banking is standard for younger people, extending to their investment accounts, says Ai Ling Toh, a relationship manager with RBC Wealth Management in Singapore.

Born between 1980 and 2000, Millennials experienced the 2008 global financial crisis. Unlike their parents, who were influenced by the struggles of World War II, Millennials have a different outlook on money.

“The older generation focused entirely on building wealth and their businesses,” says Toh. “The younger generation thinks more about their lifestyle and finding purpose in their lives.”

The generation gap between parents and their adult children in the 1960s is repeating itself, now with Baby Boomers seen as the traditionalists.

“Investing has radically changed since my parents’ time,” says Richard Vibert, a Millennial venture capitalist with Arbor Ventures who recently moved from Hong Kong to London. “They saved to buy a house. Our generation is more interested in assets like cryptocurrency and international real estate, accessible online, rather than homeownership.”

Lisa Song, a research analyst with the Nomura Research Institute America in New York City, says many Millennials she knows are focused on financial stability and meaningful investments.

Generational Differences in Money Management

Song notes that Millennials often prioritize immediate goals, such as funding their expenses without relying on family, while their parents saved for specific milestones like marriage and retirement.

“Asian families are known for saving money for the next generation and not spending on themselves,” says Gina Chong, a relationship manager with RBC in Singapore. “But Asian Millennials tend to spend more and save less, confident in their earning ability and knowing they have their parents’ savings.”

Vibert highlights that Millennials interested in long-term investing rely heavily on technology. “A weakness is that we keep money in various accounts, making us vulnerable to cyberattacks,” he says. “I like not having my money in a bank, but I worry about my information being spread across different places.”

Millennials and Financial Success

While their parents saw financial success as job stability, corporate advancement, saving, and retiring, Vibert says Millennials see it differently.

“We admire entrepreneurs who build and sell businesses,” he says. “Success is less about earning a steady wage and more about entrepreneurial achievements.”

This entrepreneurial spirit extends to their work approach. Vibert notes that Millennials blend work and personal life, motivating them to work more rather than aim for traditional retirement.

Toh observes that second-generation future family business owners view financial success as working for themselves and expanding their parents’ businesses. “They are entrepreneurial and eager to explore new areas,” she says. “They don’t see any limits.”

Chong adds that it’s unlikely for Millennials to stay in one job forever, unlike their parents. “They’re more inclined to take risks and become entrepreneurs,” she says.

Financial Guidance for Millennials

This entrepreneurial and independent mindset influences how Millennials approach wealth planning. They seek financial advice differently from their parents, says Toh.

“Their parents trust us completely and don’t seek second opinions,” says Toh. “Millennials, new to investing, want to be well-informed and ask many intelligent questions.”

Millennials find extensive information on online trading platforms that offer free reports, Toh notes. “This is different from their parents, who asked me for research material. Millennials come prepared with their own materials.”

Many Millennials look forward to inheriting their parents’ wealth and need to learn how to integrate it into their lives. “Their main goal is to preserve wealth, but they also want to grow it, often asking their parents to trust them with significant sums to invest,” says Chong. “They typically start by researching online before consulting friends in banking.”

Chong adds that Millennials are more willing to take risks, believing they can recover any losses.

Millennials in the Digital Age

Technology shapes how Millennials invest, whether making personal decisions or seeking help from advisors. Vibert acknowledges the importance of financial advisors for building trust and personal relationships. He currently relies on friends and social media for decisions but sees the value in future professional assistance.

Song anticipates that individualized wealth planning will become crucial as Millennials’ wealth grows. However, she expects they will always start with online research before consulting advisors.

“Customization is key, so wealth managers who can add value will attract Millennials, especially as they inherit wealth or build their own,” says Song. She also notes Millennials’ preference for responsible investing, aiming to balance financial returns with social impact.

Toh emphasizes the need for wealth managers to engage Millennials by aligning with their interests and lifestyle. “We need to provide information on topics they care about, like travel or digital business expansion,” she says.

Each generation influences the world and evolves its investment perspectives. Just as Baby Boomers shaped their world, Millennials will continue to shape the future of finance.

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