1. Millennials and Financial Decision-Making
Billy J Hensley, Ph.D.
Senior Director of Education

2. What is NEFE? How we fulfill our mission: Education Awareness Research
National Endowment for Financial Education (NEFE)
Private Operating Foundation
National focus; headquartered in Denver, Colorado
How we fulfill our mission:
Education
Awareness
Research

3. Overconfident and Underprepared

4. Overconfident and Underprepared
The Disconnect Between Millennials and Their Money
Insights from the 2015 National Financial Capability Study: George Washington University

5. Overview of Millennials
70 to 80 million individuals born between the late 1970s and mid-1990s
This analysis is focused on 23 – 35 year old individuals (in 2015)
Most diverse generation
Minorities are broadly represented (38%)
11% of all Millennials have at least one immigrant parent
57% are female
Half (51%) are married
Millennials are highly educated
44% have at least a bachelor’s degree
Will soon makeup the largest share of the labor market
By 2025, 3 out of 4 workers globally will be Millennials

7. Long Term Liabilities: Student Debt
Among Millennials
51% of Millennials ages have student debt
46% of Millennials ages still have student debt
Student debt is more prevalent among younger respondents but continues long after
* Data is taken from total 2015 NFCS data with over 27,000 respondents

9. Alternative Financial Services
Millennials show high usage of Alternative Financial Services (AFS) such as payday loans, pawnshops, auto title loans, and rent-to-own products.
% of Millennials who used an AFS product in the last five years prior to the survey

10. Financial Fragility
“How confident are you that you could come up with $2,000 if an unexpected need arose within the next month?”
32% are financially fragile

11. Perceived and Actual Financial Knowledge
Perceived Financial Knowledge Actual Financial Knowledge
74%
Note: Percentages do not add up to 100% because “don’t know” and “prefer not to say” answers are excluded.

12. Signs of Overconfidence
“I am good at dealing with day-to-day financial matters, such as checking accounts, credit and debit cards, and tracking expenses.”
Note: Percentages do not add up to 100% because “don’t know” and “prefer not to say” answers are excluded.

13. Implications for Financial Educators
Due to the impact of timing, identify teachable moments
Learn from those who have demonstrated greater impact
Career and Workplace Educators
State, District, and School Gains
Share effective interventions and best practices
Use research findings to guide practice

14. The Silver-Bullet Approach is Dead
Advocating for a single-minded approach to financial education is…
Short-sighted
Ignores reality
Places all the responsibility on a single person or government agency
Is lazy
Has not considered the factors of daily life

15. Five Key Factors for Effective Financial Education
Defining Impact
Five Key Factors for Effective Financial Education
Well-trained Educator (tested e-learning protocol)
Vetted/Evaluated Program Materials
Timely Instruction
Relevant Subject Matter
Evidence of Impact (Evaluation)

16. NEFE Resources

17. NEFE Resources CashCourse Financial Workshop Kits Smart About Money
Financial Workshop Kits
Smart About Money
My Retirement Paycheck
On Your Own

18. QUESTIONS?