Young Millennials and Money Survey
Young Money Survey Attitudes toward money, education and working life
About TD Ameritrade Holding Corporation
TABLE OF CONTENTS
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD)
CO LLEG E LIFE
……................ .... .... .… …..
3
FAMILY LIFE…………… …… … …… .. ..………….…..
12
W O RKING LIFE…………… …………………. .… ..… ..
16
APPENDIX ……… … …… … …… … …… … ……….......
24
technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
College Life
Young millennials who are at college, or have been, hold $10,205 in student debt, on average, and expect to have paid it off by age 35 • • •
Young millennials are defined as ages 20 to 26 Young millennials at college have slightly higher debt, on average, than those who have left ($11,475 vs. $9,640) One in 7 (14%) young millennials with student debt expect they will be 50 or older when their debt is fully paid off How much student debt do you have? By what age do you expect to have paid off your student debt?
Young Millennials %. Averages rounded to nearest $5 50
42
Average: $10,205
40
At College: $11,475 Post-College: $9,460
South: $8,120 Midwest: $13,425 Southwest: $6,915
30 16
20
9
15
11
6
10 0 $0
$1 to $1,000
$1,000 to $9,999
40
$20,000 to $49,999
$50,000 or over
At College: 38 Post-College: 34
Average: 35 50
$10,000 to $19,999
40 32
30 20
14
14
40-49
50+
10 0 20-29
30-39
Q430. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; South n=182; Midwest n=135; Southwest n=107 Q431. Base: All Young Millennials with more than zero student loan debt n=449
Young millennials’ college education is funded through financial aid, scholarships/grants/bursaries and student loans • •
Four in 10 (42%) young millennials who are at college, or have been, paid for their college education with financial aid Half (52%) of those who are currently at college are paying for their education through financial aid, while for post-college millennials, over a third (36%) used financial aid
Young Millennials
How are/did you/your parents/guardians pay for your college, at least partially?
%
At College: 52% Post-College: 36% With financial aid
Reside in top 10 city: 33% Reside elsewhere: 46%
Midwest: 50%
42
With scholarship/grants/bursaries
40
With student loans
40
Working a part-time job while attending college (e.g. waiter/waitress, cashier, delivery driver, etc.)
30
From the savings of your parents/guardians
30
From your savings
At College: 48% Post-College: 36%
Reside in top 10 city: 31% Reside elsewhere: 44%
Suburban: 47% Midwest: 50%
Mid-Atlantic: 49% Suburban: 34%
24
Work study
12
From a 529 plan owned by your parents/guardians or another tax-deferred college savings plan From a 529 plan owned by your grandparents or another tax-deferred college savings plan
9 7
I don't know
6 0
20
40
60
80
Q420. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 city n=243; Reside elsewhere n=519; Suburban n=274; Midwest n=137; Mid-Atlantic n=131. Multiple responses allowed
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future •
About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
Young Millennials
Which of the following describe how you view the cost of your college/trade school education?
%
The cost of my college/trade school education is a good investment in my future
Choosing an expensive college/trade school with a good reputation isn't worth the extra money
57
Suburban: 61%
60
80
26
The education I receive will never be worth the amount of student debt I have/will have
23
Even if college/trade school cost twice as much as it does, I would still go to college/trade school
17
None of the above
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
5
0
20
40
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Four in 10 (39%) young millennials have delayed purchasing a home due to student debt •
Three in 10 (31%) young Millennials have delayed saving for retirement, moving out of their parents house (27%) and a quarter (25%) have delayed having children due to student debt
Young Millennials
Has your student debt caused you to delay any of the following?
%
Buying a home
39
Saving for retirement
At College: 31% Post-College: 43%
31
Moving out of your parents' home
27
Having children
25
Getting married/civil ceremony
21
None of the above
26 0
20
40
Q435. Base: All Young Millennials with more than zero student loan debt n=449; Post-College n=280; At College n=169 Multiple responses allowed
60
80
“Work to earn some money while you are at college” is the #1 piece of advice postcollege young millennials would give to their 18 year-old selves •
Top advice to their 18 year-old selves regarding college included working as hard as you can at college (enjoy yourself later), closely followed by picking the right program of study to secure employment
What one piece of advice would you give to your 18-year-old self regarding college?
% Work to earn some money while you are at college
Suburban: 24%
17
Work as hard as you can at college. You can enjoy yourself later
14
Pick the right program of study to secure employment
13
Get to know yourself before starting college
Suburban: 17%
10
Try and get an internship while at college
8
Pay off your credit cards in full every month
8
Only take the bare minimum of student loans
8
Don't work too hard at college. Remember to enjoy yourself
Reside in top 10 city: 11%
8
Take your time before starting college
4
Don't go to college
2
None of the above
8 0
5
Q810. Base: All post-college Young Millennials n=480; Suburban n=157; Reside in top 10 city n=174
10
15
20
25
30
Study harder and spend less money while in college are the top 2 changes post-college young millennials would carry out if they could do it all again • •
About a quarter of young millennials who have been to college say that if they could do it all again they would study harder (26%) and spend less money/get into less debt (24%) Two in 10 (22%) would choose a different major for one that is in a higher-paying field If you could do it all again regarding college, which of the following changes would you make?
Young Millennials %
Study harder
26
Spend less money/get into less debt
24
Choose a different major – that is in a higher-paying field
22
Work while studying
19
Study abroad
19
Choose a different major – that is more interesting/ could make a difference
19
Try to find time to have more fun
18
Choose a different major – that is in a high-demand field
16
Choose a different college
15
Get an internship while at college
15
Not go to college
6
Go to trade school
6
Not work while studying
6
None of the above
10
0
Q440. Base: All post-college Young Millennials n=480 Multiple responses allowed
5
10
15
20
25
30
Three in 10 (30%) post-college young millennials regret buying new books instead of used ones and (29%) regret not choosing the right program of study – the latter is their #1 single regret • •
About a quarter (26%) of post-college young millennials regret taking too much money in student loans and over 2 in 10 (23%) regret not using their student loan wisely Three in 10 (29%) have no financial regrets from their college years
Young Millennials
What are your biggest financial regrets from your college years? What is your #1 financial regret from your college years?
%
#1 Regret Buying new books instead of used
Reside in top 10 city: 37% Reside elsewhere: 26%
30
Not choosing the right program of study
11% 13%
29
Taking out too much money in student loans
26
Not using my student loan wisely
23
Not seeking out a program with an internship
22
Not working during the school year
South: 35%
10% 7% 7%
Urban: 26%
6%
21
Spending the additional funds needed to go to a well-known/well-regarded school
South: 25%
19
Attending a 4-year college instead of 2-year or 3-year college
5%
16
Spending money to be part of a fraternity/sorority
15
Something else
5% South: 23%
4% 4%
5
I have no financial regrets from my college years
29 0
20
South: 20% 40
29% 60
Q800a/b. Base: All post-college Young Millennials n=480; Reside in top 10 city n=174; Reside elsewhere n=306; Urban n=273; South n=110 .
80
100
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future •
About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
Young Millennials
Which of the following describe how you view the cost of your college/trade school education?
%
The cost of my college/trade school education is a good investment in my future
Choosing an expensive college/trade school with a good reputation isn't worth the extra money
57
Suburban: 61%
60
80
26
The education I receive will never be worth the amount of student debt I have/will have
23
Even if college/trade school cost twice as much as it does, I would still go to college/trade school
17
None of the above
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
5
0
20
40
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Family life
Almost half (47%) of young millennials did not or do not expect to move back with parents after college, and 2 in 3 (65%) teens say the same • • •
Almost 4 in 10 (37%) young millennials moved, or plan to move, back into their parents’ home after college Almost half (48%) of post-college young millennials moved back in with parents after college Over a third (35%) of Teens expect to move back into their parents’ home after college
After the completion of college/trade school, do you expect to, or did you, move back into the home of your parents/guardians? % Young Millennials
Teens
100
90 80 70
65
60 47
50 40
30
37
35
Mid-Atlantic: 49%
20
Reside in top 10 city: 44%
10
Post-College : 48%
Southwest: 56% Mid-Atlantic: 34%
Mid-Atlantic: 55% West: 73%
Reside in top 10 city: 37% 15 At College : 26% Post-College : 9%
Mid-Atlantic: 45%
0 Yes, I moved back to my parents home after college
Yes, I expect to move back into my parents home after college
No, I did not/do not expect to move back into my parents home after college
Q600. Base: All college and post-college Millennials n=401; All college Teens and pre-college Teens who expect to go to college n=251; Post-College Millennials n=480; College Millennials n=282; Reside in top 10 city: Millennials n=243; Mid-Atlantic Millenials n=131; Southwest Millennials n=108; Mid-Atlantic Teens n=121; West Teens n=161 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
On average young millennials became or expect to become financially independent at 23 years old • •
Teens expects to become financially independent one year younger, at age 22 Over 1 in 7 (16%) teens never expect to become financially independent
At what age did you become, or expect to become, completely financially independent from your parents/guardians? % Young Millennials
I became/expect to become financially independent at age ….
Average age: 23
Teens
Average age: 22
50 44
45 38
40
33 Reside in top 10 city: 50% Reside elsewhere: 42%
35 30 25 20 15 At College: 17% 10 Post-College: 22% No College: 37% 5
24 Pre-College: 32% At College: 41% No College: 64%
21 16 10
Reside in top 10 city: 45% Reside elsewhere: 36%
Pre-College: 18% At College: 9% No College: 10%
8 3
2
0
20 or younger
21 to 25
26 to 30
Over 30
Never
Q610. Base: All Young Millennials n=1,001; All Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College n=138; No College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Young millennials would be embarrassed to still be living with their parents at age 28 •
Meanwhile teens feels that the maximum acceptable age to be living with their parents is 26 years old
At what age would you consider it embarrassing to still be living with your parents? % Young Millennials
Teens
It would be embarrassing to still be living with my parents at age …. Average: 28
Average: 26
40 34
35 30 30
27
25
27
23 21
20 13
15
11 9
10 5 5 0 Below 20
20 to 24
Q620. Base: All Young Millennials n=1,001; All Teens n=1,000
25 to 29
30 to 34
35 or older
Working life
Young millennials are most likely to be interested in a career in medicine, whereas teens are most likely to be interested in the arts • •
Teens are almost twice as likely (17%) as young millennials (9%) to be interested in working in the arts Young millennials are more interested than teens in business (9% vs. 7%) and banking/finance/accountancy (6% vs 2%)
Among the following, which field of work are you the most interested in?
%. Top 10, one answer only
Young Millennials
16
Medical
Gen Z
6
Science and research
6
16
9
The arts
5
Law
6
17 12
Technology
6
Teaching
4
13 6
Engineering
5
The media
5
10 9
Business
6
Banking/finance/accountancy
2
7 0
10
20
30
40
At College: 10% Post-College: 6% No College: 3%
0
10
20
30
40
Q510. Base: All Young Millennials n=1,001; All Gen Z n=1,000; Young Millennials: College n=282; Post-College n=480 No College n=239 Arrows indicate a significant difference between Young Millennials and Gen Z at 95% confidence
17
Almost 3 in 10 young millennials (29%) and teens (27%) prefer to work in a corporate/business environment • •
About one-quarter of young millennials (26%) and teens (24%) prefer to be running their own business Only 1 in 10 young millennials (12%) and teens (11%) have a preference for independent or gig economy work – though almost 2 in 10 (18%) No College Teens are interested in such work
In which of the following ways would you prefer to work?
% Young Millennials
Teens
100 90 80 70
Midwest: 39%
60
No College: 19% Post-College: 33%
50
Suburban: 32%
40
No College: 18%
30
29
27
20
Midwest: 20% No College: 33% Post-College: 20% Suburban: 19% No College: 34% 26
24
Pre-College: 9% No College: 18% 12
11
10
21 13 8
8
9
12
0 In a corporate/business environment
Running your own business Independent/freelance or 'Gig economy' work (i.e. short-term, paid-per-job)
In a start-up
In another way
I don't know
Q520.Base: All Young Millennials n=1,001; All Teens n=1,000; College Millennials n=282; Post-College Millennials n=480; No College Millennials n=239; Midwest Millennials n=182; No College Teens n=151; Pre-College Teens n=711; Suburban Teens n=320; Urban Teens n=421 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Young millennials expect to work for 3 years, on average, before being promoted and teens expect to work for 4 years. Both young millennials and teens expect to switch employers every 6 years •
Teens who are at college expect to stay with an employer for 8 years
How long would you expect to be in a job before you got promoted? And how long before you move to a different employer? Time before getting promoted
%
Young Millennials Average (years): 3 30 25 20 15 10 5 0
28 22
8
Teens
Average (years): 4 27 20
19
20 16
19
7
Less than 1 year
6
1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10
8
10 years or more
Time before changing employer
40
Average (years): 6
Average (years): 6
At College: 8
35
30 20 10
9
9
14
5
7
17
33
19
20
22
11
At College: 33
0 Less than 1 year
1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10
Q530. Base: All Young Millennials n=1,001; All Teens n=1,000 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
10 years or more
Young Millennials and teens both expect to earn over $40,000 per year at age 30 and over $65,000 at age 40 • •
Young millennials who are at college or have been to college expect higher annual wages at age 30 (both groups expect $45,000+) than those who have not been to college (who expect $26,230) Young millennials who reside in one of the top 10 largest cities in the US expect much greater annual wages at age 40 ($84,260) than those who live elsewhere ($62,690) How much money were you/do you expect you will be earning per year, before taxes, at each of the time periods below? Average, excluding outliers, rounded to nearest $5 Young Millennials
Teens
$90,000 $76,910
$80,000 $69,230
$70,000
Reside in top 10 city: $84,260 Reside elsewhere: $62,960
$60,000 $50,000
$44,090
$47,335
$40,000 $26,575
$30,000
$24,930
$20,000 $10,000
$9,225
No College : $26,320 At College: $52,770 Post-College: $47,835
No College : $55,765 At College: $71,895 Post-College: $74,385
Suburban: $55,890
$8,435
$0
In your first job after high school
In your first job after college/trade school
At age 30
At age 40
Base: All who are still in school/did not leave education after high school
Q130. All: Young Millennials n=1,001, Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College n=138; No College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753. All who are still in school/did not leave education after high school: Young Millennials n=761; Teens n=883
More than 7 in 10 (76%) post-college working millennials use their degree on a regular basis •
Over a third (35%) say they use their degree constantly, 2 in 10 (20%) use it frequently/several times a week and another 2 in 10 (21%) use it several times a month
Young Millennials
To what extent are you using your degree in your current role/position?
%
Constantly/every day
11 13
35
Frequently/several times a week Sometimes/several times a month
21 20 Urban: 24%
Q460. Base: All post-college Millennials who are working n=432; Urban n=246
Rarely/several times a year Never
Use degree on a regular basis: 76%
Eight in 10 (80%) post-college working millennials deem their degree important in getting their current job •
Three in 10 (28%) say their degree was essential, 3 in 10 (29%) say it was very important in getting their current job and 2 in 10 (22%) say it was somewhat important
How important was your degree in getting your current job? Young Millennials %
10
Essential
2 28
8
Very important
Somewhat important
22
Not very important
29 Reside in top 10 City: 35% Reside elsewhere: 26%
Q470. Base: All post-college Millennials who are working n=432; Reside in top 10 city n=162; Reside elsewhere n=270
Completely unimportant I don't know
80%
Young millennials and teens want similar things out of life • •
Young millennials and teens prefer owning a home (respectively, 65%, 70%) over travelling (35%, 30%), they prefer flexible work hours (87%, 89%) to telecommuting (13%, 11%) and believe that contributing to a retirement account (65%, 53%) is more important than donating to charity (35%, 47%) – though the difference is not as pronounced for teens Both groups marginally prefer having a high paid job (55%) over having a job that makes a difference (45%) What is, or would be more important to you? %
Young Millennials
At College: 57%
At College: 43%
65
Teens
Post-College: 59% 55
35 Having money to travel
Owning a home 70
45
55 Southwest: 21%
Having a job that makes a difference
Having a high paid job
30
Southwest: 79%
Post-College: 41%
45
At College: 41%
At College: 59%
South: 58%
South: 42% 87 Having flexible work hours
35
13 Telecommuting
89
47
11
Pre-College: 92%
Pre-College: 8%
West: 93%
West: 7%
65
Donating to charity
Rural: 38%
Contributing to your retirement account
53 Rural: 62%
Q830. Base: All Young Millennials n=1,001; All Teens n=1,000; At College Young Millennials n=282; Post-college Young Millennials n=480; South Young Millennials n=245; Pre-College Teens n=711; At College Teens n=138; Rural Teens n=126; Southwest Teens n=107; West Teens n=211 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Appendix
Research Method
WHO 2,001 Young Americans (half Young Millennials, age 20-26 and half Teens, age 13-19)
Average time to complete survey: 15 minutes
WHAT
WHEN
Online Survey
48% Male 52% Female
March 17 to 22, 2017
CONDUCTED BY Head Solutions Group on behalf of TD Ameritrade Holding Corporation1
Throughout this report, arrows indicate a significant difference between Young Millennials and Teens. Green callouts show significant differences within Young Millennials and yellow callouts show significant differences within Teens. The categories studied for significant differences are defined on the next slide.
West
Southwest
South
21%
12%
26%
Mid-Atlantic
New England
Midwest
17%
6%
18%
This survey was conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation. 1 The statistical margin of error for the total sample of N=2,001 American adults within the target group is +/- 2.19 %.2 This means that in 19 out of 20 cases, survey results will differ by no more than 2.19 percentage points in either direction from what would have been obtained by the opinions of all target group members in the U.S. Sample was drawn from major regions in proportion to the U.S. Census. 1 2
Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services. Assumes survey participants are the same as non participants.
Note: Percentages may not add up to 100 due to rounding.
About TD Ameritrade Holding Corporation
TABLE OF CONTENTS
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD)
CO LLEG E LIFE
……................ .... .... .… …..
3
FAMILY LIFE…………… …… … …… .. ..………….…..
12
W O RKING LIFE…………… …………………. .… ..… ..
16
APPENDIX ……… … …… … …… … …… … ……….......
24
technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
College Life
Young millennials who are at college, or have been, hold $10,205 in student debt, on average, and expect to have paid it off by age 35 • • •
Young millennials are defined as ages 20 to 26 Young millennials at college have slightly higher debt, on average, than those who have left ($11,475 vs. $9,640) One in 7 (14%) young millennials with student debt expect they will be 50 or older when their debt is fully paid off How much student debt do you have? By what age do you expect to have paid off your student debt?
Young Millennials %. Averages rounded to nearest $5 50
42
Average: $10,205
40
At College: $11,475 Post-College: $9,460
South: $8,120 Midwest: $13,425 Southwest: $6,915
30 16
20
9
15
11
6
10 0 $0
$1 to $1,000
$1,000 to $9,999
40
$20,000 to $49,999
$50,000 or over
At College: 38 Post-College: 34
Average: 35 50
$10,000 to $19,999
40 32
30 20
14
14
40-49
50+
10 0 20-29
30-39
Q430. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; South n=182; Midwest n=135; Southwest n=107 Q431. Base: All Young Millennials with more than zero student loan debt n=449
Young millennials’ college education is funded through financial aid, scholarships/grants/bursaries and student loans • •
Four in 10 (42%) young millennials who are at college, or have been, paid for their college education with financial aid Half (52%) of those who are currently at college are paying for their education through financial aid, while for post-college millennials, over a third (36%) used financial aid
Young Millennials
How are/did you/your parents/guardians pay for your college, at least partially?
%
At College: 52% Post-College: 36% With financial aid
Reside in top 10 city: 33% Reside elsewhere: 46%
Midwest: 50%
42
With scholarship/grants/bursaries
40
With student loans
40
Working a part-time job while attending college (e.g. waiter/waitress, cashier, delivery driver, etc.)
30
From the savings of your parents/guardians
30
From your savings
At College: 48% Post-College: 36%
Reside in top 10 city: 31% Reside elsewhere: 44%
Suburban: 47% Midwest: 50%
Mid-Atlantic: 49% Suburban: 34%
24
Work study
12
From a 529 plan owned by your parents/guardians or another tax-deferred college savings plan From a 529 plan owned by your grandparents or another tax-deferred college savings plan
9 7
I don't know
6 0
20
40
60
80
Q420. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 city n=243; Reside elsewhere n=519; Suburban n=274; Midwest n=137; Mid-Atlantic n=131. Multiple responses allowed
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future •
About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
Young Millennials
Which of the following describe how you view the cost of your college/trade school education?
%
The cost of my college/trade school education is a good investment in my future
Choosing an expensive college/trade school with a good reputation isn't worth the extra money
57
Suburban: 61%
60
80
26
The education I receive will never be worth the amount of student debt I have/will have
23
Even if college/trade school cost twice as much as it does, I would still go to college/trade school
17
None of the above
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
5
0
20
40
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Four in 10 (39%) young millennials have delayed purchasing a home due to student debt •
Three in 10 (31%) young Millennials have delayed saving for retirement, moving out of their parents house (27%) and a quarter (25%) have delayed having children due to student debt
Young Millennials
Has your student debt caused you to delay any of the following?
%
Buying a home
39
Saving for retirement
At College: 31% Post-College: 43%
31
Moving out of your parents' home
27
Having children
25
Getting married/civil ceremony
21
None of the above
26 0
20
40
Q435. Base: All Young Millennials with more than zero student loan debt n=449; Post-College n=280; At College n=169 Multiple responses allowed
60
80
“Work to earn some money while you are at college” is the #1 piece of advice postcollege young millennials would give to their 18 year-old selves •
Top advice to their 18 year-old selves regarding college included working as hard as you can at college (enjoy yourself later), closely followed by picking the right program of study to secure employment
What one piece of advice would you give to your 18-year-old self regarding college?
% Work to earn some money while you are at college
Suburban: 24%
17
Work as hard as you can at college. You can enjoy yourself later
14
Pick the right program of study to secure employment
13
Get to know yourself before starting college
Suburban: 17%
10
Try and get an internship while at college
8
Pay off your credit cards in full every month
8
Only take the bare minimum of student loans
8
Don't work too hard at college. Remember to enjoy yourself
Reside in top 10 city: 11%
8
Take your time before starting college
4
Don't go to college
2
None of the above
8 0
5
Q810. Base: All post-college Young Millennials n=480; Suburban n=157; Reside in top 10 city n=174
10
15
20
25
30
Study harder and spend less money while in college are the top 2 changes post-college young millennials would carry out if they could do it all again • •
About a quarter of young millennials who have been to college say that if they could do it all again they would study harder (26%) and spend less money/get into less debt (24%) Two in 10 (22%) would choose a different major for one that is in a higher-paying field If you could do it all again regarding college, which of the following changes would you make?
Young Millennials %
Study harder
26
Spend less money/get into less debt
24
Choose a different major – that is in a higher-paying field
22
Work while studying
19
Study abroad
19
Choose a different major – that is more interesting/ could make a difference
19
Try to find time to have more fun
18
Choose a different major – that is in a high-demand field
16
Choose a different college
15
Get an internship while at college
15
Not go to college
6
Go to trade school
6
Not work while studying
6
None of the above
10
0
Q440. Base: All post-college Young Millennials n=480 Multiple responses allowed
5
10
15
20
25
30
Three in 10 (30%) post-college young millennials regret buying new books instead of used ones and (29%) regret not choosing the right program of study – the latter is their #1 single regret • •
About a quarter (26%) of post-college young millennials regret taking too much money in student loans and over 2 in 10 (23%) regret not using their student loan wisely Three in 10 (29%) have no financial regrets from their college years
Young Millennials
What are your biggest financial regrets from your college years? What is your #1 financial regret from your college years?
%
#1 Regret Buying new books instead of used
Reside in top 10 city: 37% Reside elsewhere: 26%
30
Not choosing the right program of study
11% 13%
29
Taking out too much money in student loans
26
Not using my student loan wisely
23
Not seeking out a program with an internship
22
Not working during the school year
South: 35%
10% 7% 7%
Urban: 26%
6%
21
Spending the additional funds needed to go to a well-known/well-regarded school
South: 25%
19
Attending a 4-year college instead of 2-year or 3-year college
5%
16
Spending money to be part of a fraternity/sorority
15
Something else
5% South: 23%
4% 4%
5
I have no financial regrets from my college years
29 0
20
South: 20% 40
29% 60
Q800a/b. Base: All post-college Young Millennials n=480; Reside in top 10 city n=174; Reside elsewhere n=306; Urban n=273; South n=110 .
80
100
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future •
About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
Young Millennials
Which of the following describe how you view the cost of your college/trade school education?
%
The cost of my college/trade school education is a good investment in my future
Choosing an expensive college/trade school with a good reputation isn't worth the extra money
57
Suburban: 61%
60
80
26
The education I receive will never be worth the amount of student debt I have/will have
23
Even if college/trade school cost twice as much as it does, I would still go to college/trade school
17
None of the above
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
5
0
20
40
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Family life
Almost half (47%) of young millennials did not or do not expect to move back with parents after college, and 2 in 3 (65%) teens say the same • • •
Almost 4 in 10 (37%) young millennials moved, or plan to move, back into their parents’ home after college Almost half (48%) of post-college young millennials moved back in with parents after college Over a third (35%) of Teens expect to move back into their parents’ home after college
After the completion of college/trade school, do you expect to, or did you, move back into the home of your parents/guardians? % Young Millennials
Teens
100
90 80 70
65
60 47
50 40
30
37
35
Mid-Atlantic: 49%
20
Reside in top 10 city: 44%
10
Post-College : 48%
Southwest: 56% Mid-Atlantic: 34%
Mid-Atlantic: 55% West: 73%
Reside in top 10 city: 37% 15 At College : 26% Post-College : 9%
Mid-Atlantic: 45%
0 Yes, I moved back to my parents home after college
Yes, I expect to move back into my parents home after college
No, I did not/do not expect to move back into my parents home after college
Q600. Base: All college and post-college Millennials n=401; All college Teens and pre-college Teens who expect to go to college n=251; Post-College Millennials n=480; College Millennials n=282; Reside in top 10 city: Millennials n=243; Mid-Atlantic Millenials n=131; Southwest Millennials n=108; Mid-Atlantic Teens n=121; West Teens n=161 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
On average young millennials became or expect to become financially independent at 23 years old • •
Teens expects to become financially independent one year younger, at age 22 Over 1 in 7 (16%) teens never expect to become financially independent
At what age did you become, or expect to become, completely financially independent from your parents/guardians? % Young Millennials
I became/expect to become financially independent at age ….
Average age: 23
Teens
Average age: 22
50 44
45 38
40
33 Reside in top 10 city: 50% Reside elsewhere: 42%
35 30 25 20 15 At College: 17% 10 Post-College: 22% No College: 37% 5
24 Pre-College: 32% At College: 41% No College: 64%
21 16 10
Reside in top 10 city: 45% Reside elsewhere: 36%
Pre-College: 18% At College: 9% No College: 10%
8 3
2
0
20 or younger
21 to 25
26 to 30
Over 30
Never
Q610. Base: All Young Millennials n=1,001; All Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College n=138; No College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Young millennials would be embarrassed to still be living with their parents at age 28 •
Meanwhile teens feels that the maximum acceptable age to be living with their parents is 26 years old
At what age would you consider it embarrassing to still be living with your parents? % Young Millennials
Teens
It would be embarrassing to still be living with my parents at age …. Average: 28
Average: 26
40 34
35 30 30
27
25
27
23 21
20 13
15
11 9
10 5 5 0 Below 20
20 to 24
Q620. Base: All Young Millennials n=1,001; All Teens n=1,000
25 to 29
30 to 34
35 or older
Working life
Young millennials are most likely to be interested in a career in medicine, whereas teens are most likely to be interested in the arts • •
Teens are almost twice as likely (17%) as young millennials (9%) to be interested in working in the arts Young millennials are more interested than teens in business (9% vs. 7%) and banking/finance/accountancy (6% vs 2%)
Among the following, which field of work are you the most interested in?
%. Top 10, one answer only
Young Millennials
16
Medical
Gen Z
6
Science and research
6
16
9
The arts
5
Law
6
17 12
Technology
6
Teaching
4
13 6
Engineering
5
The media
5
10 9
Business
6
Banking/finance/accountancy
2
7 0
10
20
30
40
At College: 10% Post-College: 6% No College: 3%
0
10
20
30
40
Q510. Base: All Young Millennials n=1,001; All Gen Z n=1,000; Young Millennials: College n=282; Post-College n=480 No College n=239 Arrows indicate a significant difference between Young Millennials and Gen Z at 95% confidence
17
Almost 3 in 10 young millennials (29%) and teens (27%) prefer to work in a corporate/business environment • •
About one-quarter of young millennials (26%) and teens (24%) prefer to be running their own business Only 1 in 10 young millennials (12%) and teens (11%) have a preference for independent or gig economy work – though almost 2 in 10 (18%) No College Teens are interested in such work
In which of the following ways would you prefer to work?
% Young Millennials
Teens
100 90 80 70
Midwest: 39%
60
No College: 19% Post-College: 33%
50
Suburban: 32%
40
No College: 18%
30
29
27
20
Midwest: 20% No College: 33% Post-College: 20% Suburban: 19% No College: 34% 26
24
Pre-College: 9% No College: 18% 12
11
10
21 13 8
8
9
12
0 In a corporate/business environment
Running your own business Independent/freelance or 'Gig economy' work (i.e. short-term, paid-per-job)
In a start-up
In another way
I don't know
Q520.Base: All Young Millennials n=1,001; All Teens n=1,000; College Millennials n=282; Post-College Millennials n=480; No College Millennials n=239; Midwest Millennials n=182; No College Teens n=151; Pre-College Teens n=711; Suburban Teens n=320; Urban Teens n=421 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Young millennials expect to work for 3 years, on average, before being promoted and teens expect to work for 4 years. Both young millennials and teens expect to switch employers every 6 years •
Teens who are at college expect to stay with an employer for 8 years
How long would you expect to be in a job before you got promoted? And how long before you move to a different employer? Time before getting promoted
%
Young Millennials Average (years): 3 30 25 20 15 10 5 0
28 22
8
Teens
Average (years): 4 27 20
19
20 16
19
7
Less than 1 year
6
1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10
8
10 years or more
Time before changing employer
40
Average (years): 6
Average (years): 6
At College: 8
35
30 20 10
9
9
14
5
7
17
33
19
20
22
11
At College: 33
0 Less than 1 year
1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10
Q530. Base: All Young Millennials n=1,001; All Teens n=1,000 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
10 years or more
Young Millennials and teens both expect to earn over $40,000 per year at age 30 and over $65,000 at age 40 • •
Young millennials who are at college or have been to college expect higher annual wages at age 30 (both groups expect $45,000+) than those who have not been to college (who expect $26,230) Young millennials who reside in one of the top 10 largest cities in the US expect much greater annual wages at age 40 ($84,260) than those who live elsewhere ($62,690) How much money were you/do you expect you will be earning per year, before taxes, at each of the time periods below? Average, excluding outliers, rounded to nearest $5 Young Millennials
Teens
$90,000 $76,910
$80,000 $69,230
$70,000
Reside in top 10 city: $84,260 Reside elsewhere: $62,960
$60,000 $50,000
$44,090
$47,335
$40,000 $26,575
$30,000
$24,930
$20,000 $10,000
$9,225
No College : $26,320 At College: $52,770 Post-College: $47,835
No College : $55,765 At College: $71,895 Post-College: $74,385
Suburban: $55,890
$8,435
$0
In your first job after high school
In your first job after college/trade school
At age 30
At age 40
Base: All who are still in school/did not leave education after high school
Q130. All: Young Millennials n=1,001, Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College n=138; No College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753. All who are still in school/did not leave education after high school: Young Millennials n=761; Teens n=883
More than 7 in 10 (76%) post-college working millennials use their degree on a regular basis •
Over a third (35%) say they use their degree constantly, 2 in 10 (20%) use it frequently/several times a week and another 2 in 10 (21%) use it several times a month
Young Millennials
To what extent are you using your degree in your current role/position?
%
Constantly/every day
11 13
35
Frequently/several times a week Sometimes/several times a month
21 20 Urban: 24%
Q460. Base: All post-college Millennials who are working n=432; Urban n=246
Rarely/several times a year Never
Use degree on a regular basis: 76%
Eight in 10 (80%) post-college working millennials deem their degree important in getting their current job •
Three in 10 (28%) say their degree was essential, 3 in 10 (29%) say it was very important in getting their current job and 2 in 10 (22%) say it was somewhat important
How important was your degree in getting your current job? Young Millennials %
10
Essential
2 28
8
Very important
Somewhat important
22
Not very important
29 Reside in top 10 City: 35% Reside elsewhere: 26%
Q470. Base: All post-college Millennials who are working n=432; Reside in top 10 city n=162; Reside elsewhere n=270
Completely unimportant I don't know
80%
Young millennials and teens want similar things out of life • •
Young millennials and teens prefer owning a home (respectively, 65%, 70%) over travelling (35%, 30%), they prefer flexible work hours (87%, 89%) to telecommuting (13%, 11%) and believe that contributing to a retirement account (65%, 53%) is more important than donating to charity (35%, 47%) – though the difference is not as pronounced for teens Both groups marginally prefer having a high paid job (55%) over having a job that makes a difference (45%) What is, or would be more important to you? %
Young Millennials
At College: 57%
At College: 43%
65
Teens
Post-College: 59% 55
35 Having money to travel
Owning a home 70
45
55 Southwest: 21%
Having a job that makes a difference
Having a high paid job
30
Southwest: 79%
Post-College: 41%
45
At College: 41%
At College: 59%
South: 58%
South: 42% 87 Having flexible work hours
35
13 Telecommuting
89
47
11
Pre-College: 92%
Pre-College: 8%
West: 93%
West: 7%
65
Donating to charity
Rural: 38%
Contributing to your retirement account
53 Rural: 62%
Q830. Base: All Young Millennials n=1,001; All Teens n=1,000; At College Young Millennials n=282; Post-college Young Millennials n=480; South Young Millennials n=245; Pre-College Teens n=711; At College Teens n=138; Rural Teens n=126; Southwest Teens n=107; West Teens n=211 Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
Appendix
Research Method
WHO 2,001 Young Americans (half Young Millennials, age 20-26 and half Teens, age 13-19)
Average time to complete survey: 15 minutes
WHAT
WHEN
Online Survey
48% Male 52% Female
March 17 to 22, 2017
CONDUCTED BY Head Solutions Group on behalf of TD Ameritrade Holding Corporation1
Throughout this report, arrows indicate a significant difference between Young Millennials and Teens. Green callouts show significant differences within Young Millennials and yellow callouts show significant differences within Teens. The categories studied for significant differences are defined on the next slide.
West
Southwest
South
21%
12%
26%
Mid-Atlantic
New England
Midwest
17%
6%
18%
This survey was conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation. 1 The statistical margin of error for the total sample of N=2,001 American adults within the target group is +/- 2.19 %.2 This means that in 19 out of 20 cases, survey results will differ by no more than 2.19 percentage points in either direction from what would have been obtained by the opinions of all target group members in the U.S. Sample was drawn from major regions in proportion to the U.S. Census. 1 2
Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services. Assumes survey participants are the same as non participants.
Note: Percentages may not add up to 100 due to rounding.
