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Millennials matter
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1. Pew Research Center,April 2017. 2. The Brookings Institution, May 2014. 3. Accenture Consulting, 2016 4. Pew Research Center, March 2018
Millennials in America1
80 million
of the workforce will be
Millennials by 20252
75% in wealth may pass
down to Millennials3
$30 trillion
Millennials4 Generation X Boomers Traditionalists
Born: 1981 to 1996
Age: 23 to 38
Born: 1965 to 1980
Age: 39 to 54
Born: 1946 to 1964
Age: 55 to 73
Born: 1928 to 1945
Age: 74 to 91
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Start with happiness, not
numbers
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Let’s talk for a moment about
happiness
• We often think of money and happiness
separately
• But for Millennials, happiness is integral
and a primary motivator
in all that they do
• Research shows their happiness is
inescapably intertwined with their
financial life
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The active pursuit of happiness
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Our focus today
• The Millennial Mindset
• Taking the active approach to happiness
• Key finding: The Positive Financial Indicator (PFI)
• What Millennials really want
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Household Investable Assets: $100k+
Median personal income: $88k
Household Investable Assets: < $100k
Median personal income: $43k
26% Affluent
WFAM Millennial survey
WF Millennial Study– Harris Poll 2017
1 Age range at time of survey, ages of survey respondents
Millennials
surveyed
1,771
Born between
1980-1997
Ages1
20-36
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Key areas included:
• Emotional lives
and happiness
• Financial knowledge
• Career and
relationships
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Millennials prioritize money differently
WF Millennial Study– Harris Poll 2017
I can’t
afford my
healthcare
35%
Affluent
Millennials
43%
All
Millennials
I rely
regularly on
others for
support
42%
All
Millennials
44%
Affluent
Millennials
I have a
significant
amount of
debt
35%
Affluent
Millennials
46%
All
Millennials
The Anxiety Box
of Millennials prioritize
financial security
98%
of Millennials want to get over their
anxiety about money
69%
of Millennials are satisfied
with their financial lives
Only half
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Millennials’ priorities: relationships and purpose
Top-3 activities that make Millennials “happier”
Doing good
23%
Money
10%
Work
4%
Love
62%
Power
1%
The happiness factor
WF Millennial Study– Harris Poll 2017
Time with family (72%)
Time with friends (61%)
Helping others (59%)
9
3in 5Millennials say
they feel happy and their
lives are meaningful.
10. WELLS FARGO ASSET MANAGEMENT |
The path to
happiness
10WELLS FARGO ASSET MANAGEMENT |
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Millennials & Positive Financial Indicators
The survey uncovered five distinctive and actionable financial behaviors that can
actually drive greater happiness—the
Positive Financial Indicators (PFI)
WF Millennial Study– Harris Poll 2017
1. I pay monthly expenses
2. I save for future needs
3. I am saving for retirement
4. I set and achieve my financial goals
5. I feel in control of my financial life
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Positive Financial Indicator behaviors:
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Positive Financial Indicator attributes
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Millennials affirming all five PFI questions
WF Millennial Study – Harris Poll 2017
Earnings
33%
(of the 36%)
earn less than
$50,000
Age
ages 20–27
31%
ages 28–36
69%
Only
36%
of total
Millennial
population
Population Gender Employment
85%
are employed full-time55% 45%
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The direct path to happiness
Affirming the PFI = More happiness and financial confidence
WF Millennial Study– Harris Poll 2017
62%
79%
In general, I consider myself happy
Despite it all, I still think the stock
market is the best place to invest
I know everything I need to know
to use my money successfully
All Millennials
Millennials Affirm PFI
51%
74%
51%
75%
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New risks for Millennials
Unlike Baby Boomers, Millennials face a different set of risks
• Market risk
• Wage and career prospect risk
• Student debt
• Cost of healthcare
• Many are focused on their present needs over future needs, such as retirement
WF Millennial Study– Harris Poll 2017
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High anxiety
Millennials have experienced a number of market shocks and uncertainties—
leading to caution and skepticism.
WF Millennial Study– Harris Poll 2017
Great recession made
them more cautious
about spending
77%
I have reduced my
investments in the
stock market
41%
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Key events in the lives of
Millennials
• Columbine mass shooting (1999)
• Tech Bubble Crash (2000–02)
• Terrorist attacks (9/11/2001)
• Iraq/Afghan wars (2003)
• Healthcare costs skyrocket (2000s)
• Financial downturn (2008)
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Investing for impact
The Environmental, Social, and Governance (ESG) connection
WF Millennial Study– Harris Poll 2017
83%
Want to choose
investments that make
the world a better place
78%
Believe socially
responsible companies
will be more successful
in the long-run
73%
Said it’s easier to
stomach the markets’
ups and downs if
their investments were
having a positive
impact on the world
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24 million
Millennials WANT an advisor
The value of advice
73% of affluent Millennials recognize the need for a financial advisor
WF Millennial Study– Harris Poll 2017
Affluent Millennials
Non-Affluent Millennials
42%
18%
Yes, I have a
Financial Advisor
31%
42%
No, but I would like
to have one
22%
31%
No, I don’t need
one
9%
No, and I would
never have one
5%
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On behalf of Wells Fargo, Harris Poll conducted 1,771 online interviews with American Millennials age 20 to
36 who identify as either the primary or joint financial decision-maker for their household. The survey was
conducted from June 16-29, 2017. Data were weighted as needed to represent the population of those
meeting the qualification criteria. Figures for education, age, gender, race, ethnicity, region, household
income, investable assets, marital status, employment status, and number of adults in the household were
weighted where necessary to bring them in line with their actual proportions in the population.
About the survey
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Stock values fluctuate in response to the activities of individual companies and general market and
economic conditions. Bond values fluctuate in response to the financial condition of individual issuers,
general market and economic conditions, and changes in interest rates. Changes in market conditions and
government policies may lead to periods of heightened volatility in the bond market and reduced liquidity
for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may
lose principal value. Interest rate changes and their impact on the fund and its share price can be sudden
and unpredictable. Investing in environmental, social, and governance (ESG) carries the risk that, under
certain market conditions, the investments may underperform products that invest in a broader array of
investments. In addition, some ESG investments may be dependent on government tax incentives and
subsidies and on political support for certain environmental technologies and companies. The ESG sector
also may have challenges such as a limited number of issuers and liquidity in the market, including a robust
secondary market. Investing primarily in responsible investments carries the risk that, under certain market
conditions, an investment may underperform funds that do not use a responsible investment strategy.
Disclosure
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INVESTMENT PRODUCTS: NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE
Wells Fargo Asset Management (WFAM) is the trade name for certain investment advisory/management
firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital
Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM
entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA).
This material is for general informational and educational purposes only and is NOT intended to provide
investment advice or a recommendation of any kind—including a recommendation for any specific
investment, strategy, or plan.
Disclosure
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