The Long and Short of Finances
for the Generations
In response to a study question about actions that would make it easier to manage
short- and long-term finances, the research team observed significant generational
differences, namely about the strategies investors use to improve the ability to
prioritize and manage short- and long-term finances. Having an established sense of
generational priorities enables advisors to have a head start preparing for even the
first conversation with new clients.
Short-Term Financial Views
In the study, younger Affluent generations revealed that their top short-term financial
considerations included the need to cut expenses and create a budget. They also see
strength in automating finances and want an accountability partner. In comparison,
older Affluent generations also see the need to cut expenses, but they want to build
an emergency fund and avoid high-interest debt.
Which would make managing your short-term finances easier?
Top Three Ranked
Cut expenses
Create a budget
Build an emergency fund
Avoid high interest debt
Having an accountability partner
Automate your finances
Use technology to manage finances
(Mint, PocketGuard, etc.)
Leverage an online chatbot or virtual coach
to help you with budgeting and spending
None of these
Other
Younger Millennials (25-35) Older Millennials (36-44) Gen X (45-56) Boomers (57-65)
54%
60%
64%
59%
56%
61%
52%
50%
37%
43%
52%
58%
46%
43%
49%
49%
31%
25%
20%
17%
30%
27%
15%
15%
24%
20%
16%
9%
19%
13%
9%
3%
1%
2%
7%
13%
0%
2%
1%
1%
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