BOSTON, Sept. 6, 2018 /PRNewswire/ -- Twine, the savings and investing app backed by John Hancock, today released the results of a new consumer survey, which uncovered new attitudes and habits around investing among 1,000 U.S. adults (ages 18-55). The survey found that although most millennials have a strong understanding of investing, 46 percent aren't investing outside of a 401(k) account, and there may be a false sense of intimidation around what it takes to start investing.
"It's really promising to see young adults learning about investing and communicating about it with others," said Uri Pomerantz, CEO of Twine. "The next step is shifting the mindset around investing by starting with small changes in behavior – it doesn't take a financial advisor or a large sum of money to get started. There are many entryways into investing that can help people grow their wealth and meet their financial goals, regardless of prior knowledge, current net worth or previous money missteps."
The survey explored how well people understand investing and how that knowledge impacts their financial behavior, the results of which found that despite a solid knowledge base, millennials are still holding back from reaching their full financial potential. Key findings showed:
- Millennials have a solid understanding of investing. Survey respondents were asked to answer basic questions about investing, such as the differences between high- and low-risk investments, and how bond and interest rates are related. Forty-four percent of millennials scored a passing grade on the investing pop quiz.
- There are misconceptions around what it takes to start investing. Nearly half of millennials (46 percent) believe you need at least $1,000 to start investing, and 17 percent believe you need $10,000. There are a variety of services and platforms available – including Twine – that allow users to start saving with as little as $5 and investing with only $100.
- There may be a correlation between being open about money and being more financially savvy. Those who talk about their finances and investing are more likely to be investing themselves. Millennials are the most likely generation to go to their friends for financial advice, and nearly 80 percent of all respondents who are currently investing outside of a 401(k) talk to their friends about their finances.
- While millennials are motivated to reach their financial goals, they're distracted by impulsive spending like vacations and shopping. More than twice the number of millennial respondents indicated they are distracted from their financial goals by spontaneous weekend trips with friends or clothes and jewelry shopping than their Gen X counterparts. Rather than changing their investing or savings approach to meet financial goals (and avoid these distractions), respondents indicated they are looking for quick fixes – 18 percent said they would be willing to start a side hustle to meet a goal and 23 percent would work overtime.
- Despite ample technology available to start investing, people are missing out. More millennials rely on basic web search for financial information, trusting the internet as one of the most valuable sources over friends or a robo-advisor/financial app. Moreover, Twine's previous #RelationshipGoals survey indicated that 49 percent of millennials are using a robo-advisor to save or manage money, but this most recent survey found only 16 percent are using a robo-advisor to invest – showing they're hesitant to take the extra step to invest via technology.
For more details about the research and findings, visit https://twine.com/blog/stop-working-harder-money-start-investing-now/.
This report was commissioned by John Hancock and fielded by independent research firm Equation Research in July 2018. The responses were generated from a survey 1,013 people ages 18-55 who reside in the United States.
About Twine by John Hancock
Twine is the first saving and investing app built for two. It simplifies saving for major milestones like weddings, down payments and vacations. Twine helps you put your savings on autopilot and invest in portfolios designed to help you reach your goals. Joint Twine accounts allow you to contribute with another saver and track your progress together. Twine is backed by the stability and expertise of John Hancock. To download, visit http://apple.co/2BZWCjJ. Twine is a service provided by John Hancock Personal Financial Services, LLC, an SEC registered investment adviser.
About John Hancock and Manulife
John Hancock is a division of Manulife Financial Corporation, a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States, and Manulife elsewhere. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. Assets under management and administration by Manulife and its subsidiaries were over CAD$1.1 trillion (US$849 billion) as of June 30, 2018. Manulife Financial Corporation trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK. Manulife can be found at manulife.com.
One of the largest life insurers in the United States, John Hancock supports approximately 10 million Americans with a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, and college savings plans. We also offer advice through Signator, a network of independent financial advisors. Additional information about John Hancock may be found at johnhancock.com.
SOURCE John Hancock