ST. LOUIS–A new survey around the knowledge and life skills of Millennials and Gen Z’ers has considerable uncertainty around financial issues, even as nearly half also believe money management is the most important life skill to have.
The same survey also found that while more people know the name of Taylor Swift’s latest album than they do the name of their congressional representatives.
“A challenging economic climate has also forced Americans to reconsider the tasks they are willing to outsource and the measures they’ll take to save money,” stated Real Estate Witch, which conducted the survey. “As consumers adjust to this financially unstable environment, a greater emphasis has been placed on developing self-reliance and vital life skills.”
Financial Knowledge
Credit unions aiming to provide additional direction to members should note the survey also found:
- 14% aren’t confident in basic math
- 21% don’t actually know what a 401(k) is
- 57% aren’t confident in their real estate investment knowledge
- 16% aren’t confident in writing a check without assistance
- 21% aren’t confident with managing their money
- 85% say that investing in a 401(k) or individual retirement account (IRA) is the easiest way to save for retirement
- 81% agree that consistent, long-term investing for retirement is preferable to trying to time the market
- Respondents affirmed that renting can be advantageous because it helps take some of the burden of maintenance off the resident (78%)
- 17% of Americans say it’s best to wait until your 40s to start saving for retirement. The younger generations are much more likely to share this outlook. One-fourth of both Gen Z and Millennials (24%) agree, compared to 18% of Gen X and a mere 5% of Boomers
- 22% of Americans seem to struggle with budgeting and selecting their own health insurance
Real Estate-Related Questions
- 40% of Americans are confident in their understanding of real estate commission rebates — an increasingly common offering designed to help sellers and buyers save money
- 45% of Americans say they aren’t confident in their understanding of the home-selling process, whereas 38% say they aren’t confident in their knowledge of the home-buying process
- 65% of Americans answered correctly that a down payment is the sum a buyer pays upfront for a home. This strongly varies by generation, with 85% of Boomers, 67% of Gen X, 57% of millennials, and 44% of Gen Z choosing the right answer
- Escrow is a less widely understood concept: Only 44% of Americans answered correctly that escrow is the holding of funds by a neutral third party during a home sale. Boomers scored much higher than other generations on this question, with 68% selecting the right choice, Real Estate Witch said. Fewer than half of Gen X (43%) answered correctly, while about a third of Millennials (33%) and less than a quarter of Gen Z (22%) chose the right answer.
- Only 38% of Americans can accurately identify the four main elements of a mortgage payment: principal, interest, property taxes, and insurance (PITI).
Life Skills Findings
Among the findings in the survey related to the most essential life skills:
- 46% consider money management skills to be one of the most essential life skills
- 42% said people/communication skills
- 42% said problem-solving skills
- 36% said critical thinking
- Other skills deemed essential included self-defense (16%), cleaning (13%), and childcare/caregiving duties (12%)
Other Findings
For the record, Real Estate Witch said it found about 31% of Gen Z and 27% of Millennials can correctly name Taylor Swift’s latest album, “Midnights,” versus just 17% of Gen Z and 20% of Millennials can name their congressional representatives.
In addition:
- 8% of Americans think they’re of below-average intelligence, yet 17% can’t name the nation’s capital, and 34% can’t name their state or territory’s capital.
- 68% of Americans consider themselves to be “handy.”
- 37% of Gen Z’ers say they can’t change a lightbulb.
- Millennials are 34% more likely to fall for phone scams than Boomers.
- 24% of Americans aren’t confident they can find a date in person.
- 86% of Boomers can sew a button on a shirt, but only 58% of Gen Z can.
- 24% can’t read a map without a smartphone.
- 44% of Americans admit they use their phones constantly.
- 59% of Gen X and 58% of Gen Z identify as introverts, compared to just 52% of Millennials and 43% of Boomers.
- Nearly half of Boomers (44%) think their personal finance knowledge surpasses Gen Z’s.
- 14% aren’t confident in basic math
- 21%) don’t actually know what a 401(k) is.
- 57% aren’t confident in their real estate investment knowledge
The full report can be found here.
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