How Millennials Will Change the Face of Finance

How Millennials Will Change the Face of Finance

Core Facts

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Millennials are not only the largest generation in U.S. history, they will also receive the greatest transfer of inherited wealth ever. As a generation, they have surpassed Baby Boomers as the nation's largest living generation, according to population estimates by the U.S. Census Bureau. 

The most digitally connected generation are 18-35 year olds, with those being the first group born into the digital age. Not only that, but lower employment levels and smaller incomes have left younger Millennials with less money than previous generations. Student loans and other debt are taking up a growing chunk of postgraduate Millennials' income, so with less to spend, they're putting off commitments like marriage and home ownership. 

Because of this, Millennials are poised to transform nearly every facet of the U.S. and global economy, and the finance industry is about to experience tremendous change as it works to address the needs and preferences of this different customer.

Depending on their age, Millennials have witnessed up to three major crashes in the stock market -- 1987, 2001, and 2008 -- and don’t necessarily trust public markets with their investment dollars.

That said, in the era of the “shared economy,” Millennials will most likely fine-tune their spending to become the most capital-efficient generation of all time. 

As one example, let’s look at car ownership:

With the expansion of public transit and with young adults being concerned about the environment, they are accustomed to Uber and Lyft and don’t see the point in paying for a car that sits idle most of the time, much less the universe of costs such as interest payments, car insurance, maintenance, parking costs, etc. that come with it.

As Millennials age their wealth will grow, and they will naturally become investors as well. And beyond the sheer amount of wealth they will be controlling, they will be markedly different in their investing activities than the generations before them.

For one thing, they appear to know something the rest of us don’t. While Baby Boomers and Gen X’ers were selling during the two most recent stock market dives -- Brexit and the oil price crash in February -- Millennials were buying at a ratio of more than two-to-one. 

Think about it. To them, crowdfunding and lending online aren’t new alternative fads or models, they’re the norm, as they were born as digital natives. To them, analogue models are old-fashioned and outdated. 

For the world of investing, the stage is set for a coming together of technology and the habits of America’s largest generation to reshape investing norms.



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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