Millennials’ careful and frugal spending habits are fast transforming into financial confidence, with most feeling “optimistic” about their finances in the next three years, results from a Wells Fargo survey have found.
The survey, which asked 2,000 Americans aged 18–65 questions on the economy and personal finance, found that 66 percent of millennials felt that their financial situation was well on its way to improving. The financial confidence among millennials is much different than the general population — only 48 percent of which felt as confident.
With a stronger financial outlook, nearly a third of millennials are looking into investing in buying a house in the next three years, according to the survey. “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,” the survey results said.
Plans to buy a house mark yet another generational divide arising from financial confidence. Only 19 percent of the general population reported feeling confident about investing in buying a house.
And while an improving financial situation might suggest higher financial awareness among the population, that’s not exactly the case.
“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.”
“A third (34 percent) grade their overall understanding of personal finances a C, D or F,” according to a press release.
In other findings, 52 percent of respondents said borrowing money made them feel uncomfortable, and 45 percent grade their overall understanding of credit and loan products a C, D or F.
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