Wells Fargo Survey: Millennials Most Optimistic About Finances, Future
During Get Smart About Credit month, “How America Buys and Borrows” survey charts Americans’ optimism about personal finances and the future
SAN FRANCISCO, Sept. 29, 2015 /3BL Media/ – Americans feel optimistic about their finances and the future, according to the third “How America Buys and Borrows” survey by Wells Fargo & Company (NYSE: WFC) and Ipsos. The findings show millennials, ages 18-35, are the most optimistic about their finances and report being most likely to buy a home in the next three years. This optimism is a shift from last year when generations were more united than divided in their outlook. Wells Fargo releases this survey data as part of its annual support of the American Bankers Association’s Get Smart About Credit campaign.
“Wells Fargo has supported Get Smart About Credit for a decade because our vision of helping customers succeed financially means making sure they know where to go for the information and resources they need to take charge of their credit,” said Shelley Freeman, head of Wells Fargo’s Consumer Credit Solutions group. “This latest survey reflects strong optimism on the part of America’s youngest adult consumers and also tells us consumers in general want to learn more about how credit works.”
Survey Results – Millennials Most Optimistic
In June 2015, the “How America Buys and Borrows” survey asked nearly 2,000 American adults ages 18 to 65 about their attitudes and perceptions of the current economy, financial situations and understanding of credit. Weighting on age, gender, education, diverse segments and income were applied to the results to achieve a nationally representative population.
Data from the 2015 survey shows millennial optimism is strong in several key areas:
-
Twenty-eight percent of millennials rate their current financial situation favorably, compared to 24 percent of the general population.
-
Looking ahead, 66 percent of millennials feel their personal financial situation will improve, compared to 48 percent of the general population – an 18 percent divide.
-
Millennials are most likely to be in the process of refinancing their mortgage or buying an investment property, vacation home or new home for themselves.
-
Nearly a third of millennials say they plan to buy a new home in the next three years, compared to 19 percent of their general population counterparts.
Survey Results – Consumers Optimistic Yet Want More Knowledge
When asked how they feel about their current financial situations and expectations for the future, respondents are optimistic. Eighty-two percent of respondents report their financial situation today is stable to strong and 90 percent say that they expect their personal financial situation will stay the same or get better a year from now.
Additional findings reveal a thirst for more knowledge:
-
More than half (52 percent) of respondents say borrowing money makes them uncomfortable.
-
Half report some level of discomfort with the payments they currently make to repay debt.
-
A third (34 percent) grade their overall understanding of personal finances a C, D or F.
-
Forty-one percent grade their overall understanding of how credit scores work a C, D or F.
-
Forty-five percent grade their overall understanding of credit and loan products a C, D or F.
-
Forty-five percent grade their overall understanding of what banks consider when approving a credit product or loan a C, D or F.
10 Tips to Get Smarter About Credit
Good credit helps with more than borrowing. It can factor into everything from renting an apartment and getting a cell phone, to landing a job. Lenders, landlords, utility providers, and employers can all review credit reports when making decisions. Here are 10 tips to help manage credit:
- Monitor your credit regularly
- Know your credit limits
- Know that good scores = good rates
- Don’t make late payments
- Know your debt-to-income ratio
- Start with a college or secured credit card
- Pay down highest interest rates first
- Live within your means
- Pay more than the minimum amount
- Set up account and autopay alerts
For more information about ways to establish or improve credit – or better manage debt – consumers can visit Wells Fargo’s Smarter Credit™ Center and our free financial education program, Hands on Banking®.
Get Smart About Credit campaign
“How America Buys and Borrows” survey results coincide with the American Bankers Association’s Get Smart About Credit Day (officially celebrated on Oct. 15, 2015), a national campaign that encourages bankers to volunteer to work with young people and raise awareness about the importance of using credit and debt responsibly. As part of the Get Smart About Credit program, Wells Fargo set a goal of reaching at least 60,000 people by volunteering in classrooms and community centers to teach credit lessons across the country.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
