Millennials do things a little bit differently. They have different priorities, different job outlooks and - what you came here for - different approaches to managing finances and investments. Investing app Stash conducted a survey of millennials and found that as many as 80 percent aren't invested in the stock market at all.
So what mentality can you expect from your millennial bank and credit union customers when it comes to investing and saving?
They have less to invest
For starters, the millennial generation is inherently lower on funds than previous generations. And that trend has continued for well more than a decade since the century turned. Generation Y is less likely to be employed and has smaller relative incomes than previous generations. The U.S. Bureau of Labor Statistics estimates that the average millennial makes about 65 percent of what the average overall American adult makes. And the lack of funds isn't just in the debit column, but the credit column. The Federal Reserve estimates that the average post-grad millennial has more than $20,000 in student loan debt.
They're willing to share
When it comes to the standard assets that used to be a given in most households, millennials are bucking past trends as well. They're more resistant to investing in big purchases like cars, homes or other "nice-to-haves." They're instead embracing the movement toward a "sharing economy," with services like Uber and Zipcar making it easier to stay car-free on the go. Goldman Sachs found that 30 percent of millennials don't intend to purchase a vehicle any time in the near future.
And the same goes for house-buying with this generation. According to the Pew Research Center, the percentage of adults 18-31 settled down with a spouse and living in their own house has plummeted in the past 50 years, from 56 percent to 23 percent, while the number of young adults living with parents or family members inches upwards.
They're not all well-versed
Part of the problem millennials are having with getting into the investing mindset is that they don't have the knowledge or comfort level to start. The Stash survey found that more than 40 percent of Generation Y don't think they have enough money to begin with, while 34 percent don't know how to do it. The opportunities to offer financial investing advice are rampant among this subset of the population. It's a chance for banks' and credit unions' brightest fiscal minds to shine - provide the knowledge they need, and they'll likely reward you with their business.
They're shaky on retirement
Investing as a means of retirement isn't something that millennials are embracing full-force. A lot of it has to do with budget constraints, whether they're valid or just perceived, while many have put off retirement investments due to lack of knowledge or market instability. A study from Merrill found that a majority of millennials would give themselves B's or C's on a retirement-planning report card. (Which means there's opportunity for betterment.) Marketing your retirement or interest-accruing savings accounts to your newly employed millennial customers (and lacing it with the trappings of retiring, like travel and leisure) will send a strong message.