At Kerr Financial Group, we help high-net-worth-individuals and their families achieve their wealth management goals which often involves working with millennials and the next generation.
Today, millennials are no longer 20-something-year-old recent graduates who have yet to start building wealth. In fact, the oldest millennials are in their late thirties or approaching 40. They are doctors, lawyers, scientists, vice presidents, and CEOs. Millennials are not just the future of wealth management – they’re an important part of it. And by 2025, millennials will control 46% of personal wealth in North America.
Not surprising, financially savvy millennials look to leverage apps to help them manage their finances. And when choosing which apps to use these are the things they are looking for:
- A digitally seamless experience; 84% of millennials use internet, social media and/or online reviews to make decisions.
- 50% of online searches made by millennials are made by voice.
- Value – they are price-conscious, but ready to pay for quality and convenience.
- Transparency – like Gen X and Boomers before them, they value transparency.
Some of the Apps and services that are making inroads with the up and coming millennials include:
Mint: Free budget planning app. Brings together your banking, credit card and investment details so that you may track your bills, view your spending habits, see where you can save money, and ultimately know where you stand financially.
Honeydew: An app that helps couples manage their finances in joint.
Wealthsimple: An online platform that offers incentives in order to encourage users to build wealth. For instance, if you set up a monthly auto-deposit, you are rewarded with a fee break.
Understanding the importance of building their wealth
Working with millennials, Kerr Financial helps them to understand that one of the most consequential things they can do to build their wealth is in their control; investing their money regularly, no matter the amount, and regardless of what the market is doing – and making sure their investments are structured with their goals and risk profile in mind.
The #1 financial tip for millennials
Scheduling a monthly auto-deposit. Even if it’s only $10 per month. Over time, by working on trimming expenses or boosting income the compound interest will allow the savings to grow. Again, even if it’s only 1%, because compound interest is a powerful tool for millennials to build wealth.
Socially responsible investing with a return
Lastly – socially responsible investing is important to millennials, and the good news, is that it is possible to earn a return while taking a socially responsible approach to your investments. Whether your interests lie with the environment, sustainable food production, education, eliminating poverty, health and well-being, reducing income inequality or one of the many societal issues facing our world, investment opportunities exist to earn a financial return and make a difference.