Report: Majority of millennials are on top of their finances
“The importance of proactive financial management remains paramount for young adults, whether it’s done online or on paper,” said
Key findings from Navient’s special report include:
- Young adults who rate their financial health as “very good” use proactive techniques to manage their finances. They are more likely to balance a checkbook, use computer software or other programs than those who rate their financial health as “poor.”
- More young adults manage their money online. Fifty-two percent of young adults use their bank’s website or app to keep track of their finances, a 30 percent increase in popularity of online tools from 2015 and 2016. One in 5 young adults still balance a checkbook by hand, but that practice has declined from 2 in 5 from prior years.
- Computer-based tools are more popular among young adults with a college degree. Fifty-nine percent of degree holders use their bank’s website or app to manage their money, compared to 47 percent of non-degree holders. Degree holders are also twice as likely to use a spreadsheet than non-degree holders (29% vs 14%).
- Retirement savings accounts are more prevalent for young adults with at least a bachelor's degree. Forty-eight percent of bachelor's or advanced degree holders use a dedicated retirement fund compared to 25 percent of non-degree holders.
- Young adults are choosing convenience to pay their bills. Fifty-one percent of young adults use autopay to schedule recurring bill payments.
- Most young adults know the interest rates on their consumer loans, but awareness is lower for student loans. Many young adults know the interest rates for their mortgages (68%) and auto loans (60%), compared to only 45 percent for student loans.
Source: Navient Corporation