A recent poll indicates many Americans are throwing in the towel on new year’s resolutions. To be precise, the survey noted that 55% of those queried said they won’t be engaging in resolutions this year.
It could be for the best because of an assortment of older, related studies confirm that many of those set resolutions abandon them by March or April, sometimes sooner. That’s proof positive that good intentions, regardless of what they’re intended for, are starting points and need to be met with action and dedication.
On the other hand, saying that new year’s resolutions are declining in popularity is painting with broad strokes. Perhaps surprising to some advisors is the point that younger clients – namely millennials and Gen Z – are still setting resolutions. More importantly, they’re to do lists for the new year include plenty of financially related points.
For advisors , a point of emphasis should be younger generations’ desire for financial advice while noting that these internet-savvy clients may be getting advice from all the wrong places when they’re not directly engaging with their advisors. Compounding the woes of getting bad financial advice is what leads people to that vulnerability in the first place. They’re worried about issues such as salary, inflation, healthcare costs and more. Understandably, people get emotional about those and other financial topics and bad actors exploit those vulnerabilities.
Gen Z, Millennials Ready to Take Financial Action in 2024
A recent American Express survey highlighted various 2024 goal setting among Gen Zers and millennials and there’s plenty for advisors to absorb.
The survey, which queried more than 1,800 people born between 1981 and 2012, found that 57% of those questioned said improving their financial situations is their top goal for the new year. That’s ahead of the 50% that said they’re prioritizing broader wellness goals this year and the 48% that intend to focus on mental health in 2024. However, there are clear links between financial fitness and mental well-being so that 48% may want some perspective from advisors this year.
Not surprisingly, financial goals/resolutions for 2024 among Gen Z and millennials differ on a case-by-case basis. Fifty-nine percent said they want to focus on increasing their savings while 42% want to pare debt, according to American Express.
Forty-one percent want to stick to a defined budget while a third want to boost emergency savings and another 29% want to invest more or add to existing investments, added the survey.
Other Points for Advisors to Note
The American Express poll contains other nuggets for advisors to consider. Notably, the familiar and troubling issue of consuming financial intent advice via social media isn’t likely to wane this year unless advisors take action with younger clients.
Sixty-four percent of Gen Zers and millennnials – an alarmingly high percentage – expect to leverage social media and other online sources for financial advice this year.
Not all of those sources are bad, but some are and advisors should help young clients weed out the contenders from the pretenders.