Millennials: The Financial Enigma?

Gerald Seman

by Jerry Seman

Millennial Banking

What do we really know about Millennials? First of all, Demographers disagree on the age range for this generation.  However, generally speaking Millennials are those between the ages of 18 to 34.

We also know that the Millennial generation is the first exclusively "tech native" generation. A "tech native" is a person that was born after the inception of modern technology (i.e. the internet, computers, cell phones, etc.). These people don't know a world without these modern amenities and have been trained from a young age on how to properly use them.

Why is this relevant to the Millennial's financial needs? Studies have shown that the dependence on technology trained into their brains affects the way a Millennial operates through their day-to-day as well as their larger life milestones. This could mean a potential for Millennials to operate differently when it comes to choosing where to bank or finance a home or business.

If you're somebody who has lost hope on the Millennial generation ever "growing up" and striving for the more adult milestones in life, here is some survey information from MGIC that might change your mind about your "average Millennial:"

  • Millennial moms accounted for 8 out of 10 births in 2015.

  • Millnenials looking to buy in the next 5-years are interested in single family home.

  • 45% of Millennials now have children under 18 in their home.

  • 35% of homebuyers in 2015 were Millennials.

  • 50% of Millennials consider buying a newly built property.

  • 35% of Millennials are considering applying for HELOC in the next 18 months.

  • 53% of Millennials say they have no one to turn to for financial guidance.

  • 77% of Millennials list mortgage rates as the most important when looking for a home.

  • 71% Millennials would rather go to the dentist than listen to what banks are saying.

  • 86% Millennials believe you need 10% or more for a down payment.

While these statistics in no way dictate the behavior of all Millennials, they provide interesting clues as to how this group will develop into their economic inheritance (Millennials are set to inherit 77% of the global economy over the next 5 years). Something to keep in-mind the next time you talk to somebody from that generation.

Disclaimer: You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this blog article, even if subsequently made available by the Jersey Shore State Bank on its website or otherwise.  Jersey Shore State Bank undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this blog article.

Gerald Seman

Jerry Seman

Jerry has over 30 years of experience in mortgage banking specializing in secondary market production and sales. His primary responsibilities include managing the Mortgage Division’s strategic growth initiatives and planning throughout Pennsylvania and secondary market investor relations.