generation)z)) and)money)survey)2014s1.q4cdn.com/959385532/files/doc_downloads/... · 4...
TRANSCRIPT
June 18, 2014
GENERATION Z AND MONEY SURVEY 2014 Understanding Tomorrow’s Investors
TABLE OF CONTENTS
Research Method 3 Key Storylines 4
Future Concerns and ExpectaIons 6 Financial Holdings and AMtudes 10
InvesIng in the Stock Market 21 Higher EducaIon 30
Moving Out of Home and Working Life 42
ReIrement 55 Appendix: Study Sample CharacterisIcs 65
Disclosures 66
3 | GeneraIon Z and Money Survey
RESEARCH METHOD
The staIsIcal margin of error for the total sample of N=1,001 GeneraIon Z is +/-‐ 3.1%2. This means that, in 19 out of 20 cases, survey results will differ by no more than 3.1 percentage points in either direcIon from what would have been obtained by the opinions of all target group members in the U.S. For the total sample of N=505 GeneraIon Y the staIsIcal margin of error is +/-‐ 4.4%. Sample was drawn from major regions in proporIon to the U.S. Census A previous wave of this research was conducted in 2013 and is used as a comparison throughout this report. The 2013 survey was conducted among N=1,000 GeneraIon Z aged 14 to 23, from April 25 to May 6, 2013, by Head SoluIons Group on behalf of TD Ameritrade Holding CorporaIon1. Sample was drawn from major regions in proporIon to the U.S. Census. The staIsIcal margin of error for the total sample of N=1,000 in this previous wave is also +/-‐ 3.1%2%. 1 Head SoluIons Group (U.S.) Inc. and TD Ameritrade Holding CorporaIon are separate, unaffiliated companies and are not responsible for each other’s products and services 2 Assumes responders are the same as non-‐responders and that panelists are the same as non-‐panelists Note: Percentages do not add up to 100 due to rounding.
New England
12%
Mid-‐AtlanIc
17%
South
25%
Southwest
11%
West
11%
WHO 1001 Gen Z, born between
1990 and 1999… Now 15 – 24 years old
505 Gen Y, born between 1977 and 1989…
Now 25 – 37 years old
WHAT Online Survey
WHEN April 30 to
May 12, 2014
Average Ime to complete survey:
15 minutes
CONDUCTED BY Head SoluIons Group
on behalf of TD Ameritrade Holding
CorporaIon1
50% Male
50% Female
Midwest
22%
4 | GeneraIon Z and Money Survey
KEY STORYLINES
• The vast majority (84%) of Gen Z’s parents have spoken to their children about the importance of money, saving and invesIng, and largely by the age of 15. This appears to have results: 6 out of 10 Gen Z (57%) say that saving money is very important to them
• Though 4 out of 10 Gen Z (38%) have taken a class about money, saving and invesIng and 1 out of 5 (20%) plan to take a class soon, it is Gen Z’s parents who are, by far, their main resource for learning about money, saving and invesIng. Half of Gen Z (51%) say their parents are their #1 resource and only 10% say a teacher or course at school or college is their #1 resource
• Gen Z are not yet investors: only 1 out of 5 (20%) currently invest in the stock market
• There is some evidence of skepIcism: 3 out of 10 (28%) don’t agree that the stock market is a good place for their long-‐term investments. However the main reasons for not invesIng in the stock market are a lack of knowledge (45%) and a lack of money (42%)
Gen Z’s Parents Provide A Sound Financial FoundaLon Gen Z Is Not Yet Ready To Invest
5 | GeneraIon Z and Money Survey
KEY STORYLINES
• Almost half (44%) of Gen Z do not believe that they can count on social security when they reIre. However, only 1 out of 5 (20%) has started saving for reIrement and, on average, Gen Z believe they don’t need to start saving for reIrement unIl age 27
• Gen Z could learn from Gen Y, who believe saving should start at age 25. However, Gen Y are not seMng a perfect example: only 6 out of 10 (58%) are currently saving for reIrement. Gen Z and Gen Y are both opImisIc about reIrement and expect to reIre at age 62 and 63 respecIvely
• On average, Gen Z and Gen Y both expect they will need to save $1MM to reIre when they want to. Half (47%) of Gen Z think that saving in a saving account is the best way to reach that goal and only 1 out of 5 (17%) think invesIng in the stock market is the best way to save for reIrement. Gen Y are more realisIc, though sIll only a quarter (25%) believe that invesIng in the stock market is the best way to save for reIrement
• As in 2013, higher educaIon is very important to Gen Z and the majority (72%) expect to go to college or have done so
• Three quarters (77%) of Gen Z who are planning to go to college expect to go straight there aoer high school. If money was no object the proporIon planning to travel between high school and college would rise from 6% to 24%
• The courses offered by the university or college, the tuiIon fees charged and the locaIon are the most important factors in Gen Z’s choice of post-‐secondary insItuIon. Overall ,Gen Z rated athleIcs and sports faciliIes as the least important factor of those evaluated in this survey.
Gen Z UnrealisLc About ReLrement Planning Gen Z Strongly Values Higher EducaLon
FUTURE CONCERNS AND EXPECTATIONS
7 | GeneraIon Z and Money Survey
Significantly higher/lower than other group at 95% confidence
Q750: What are your biggest concerns about today’s economy? Base: All Gen Z, excluding blank responses (2014 n=933; 2013 n=994). Open-‐ended quesIon. Only top 5 responses shown so percentages do not sum to 100%.
Jobs/ Unemployment
Instability/Uncertainty/ Economy geMng worse
Government/Taxes/ Social security/Healthcare
Living comfortably/ Not having enough money
InflaIon/Rising cost of living
Gen Y has the same top 5 concerns as Gen Z
Gen Z 2014 Gen Z 2013
Gen Z worries about jobs and unemployment … but to a lesser extent than last year
25
34
17
11 10 10 9 7
10 8
(%)
8 | GeneraIon Z and Money Survey
Gen Z are concerned …
Q192: Please indicate the degree to which you agree or disagree with each of the following statements. Base: All (Gen Z 2014 N=1,001; Gen Y (N=505).
% Agree (7 to 10 on a 10 point scale)
Significantly higher for Gen Y (29%)
36
...about not being able to put money away for reIrement
36
...I won't be able to afford College /
higher educaIon (Not asked of Gen Y)
44
...about having a large student loan balance when I finish school (Not asked of Gen Y)
15
...that I am accumulaIng too
much credit card debt
Increased significantly from 2013 (39%).
In 2014, significantly higher for Gen Y (64%)
44
...about not being able to count on social security or other similar government reIrement programs
37
...about having to financially support my
parent(s) / guardian(s) when they get older
(42% for Gen Y; not significantly different to Gen Z)
Significantly higher for Gen Y (49%)
Sixty five percent of Gen Z disagree (49% of Gen Y)
One third of Gen Y (34%) say they are concerned about their ability to pay off their student loans.
9 | GeneraIon Z and Money Survey
Q400: The list below includes a range of different events that may or may not happen to people throughout their lives. Please indicate what order these events have happened to you, or in what order you expect them to happen to you. Base: All Gen Z 2014 expecIng each life event will occur, ranging from n=836 to n=961.
Gen Z expect their lives to follow a tradiIonal path
2.0
Start a full-‐Ime job
2.7
Buy a car
3.8
Pay off student debt
3.8
Get married/civil
partnership
4.2
Buy a home
5.1
Start saving for reIrement
5.5
Have children
Gen Y paid/expect to pay off student loans much later in life – 6th place, aoer everything except having children
There have been no changes in expected order of life events since 2013
Average order of life events (Ranked between
1st and 7th)
START
FINANCIAL HOLDINGS AND ATTITUDES
11 | GeneraIon Z and Money Survey
21
40
63
83
76
7
31
41
71
70
1
4
12
29
59
44
35
74
89
76
9
23
36
58
68
Gen Z 2014 Gen Y 2014 High School Age Gen Z 2014 College Age Gen Z 2014 Post-College Age Gen Z 2014
Gen Z holds tradiIonal banking products, though to a lesser extent than Gen Y
Q110: Which of the following financial products, if any, do you have? MulIple responses allowed. Base: All (Gen Z 2014 N=1,001; Gen Y 2014 N=505; High School Age Gen Z n=385; College Age Gen Z n=326; Post-‐College Age Gen Z n=290)
Savings Account
Checking Account
Credit Card
Student Loan(s)
401(k) or 403(b)
(%)
Gen Z
Gen Z
Gen Y are significantly more likely than Gen Z to hold each banking product.
High School Age Gen Z are significantly less likely than College Age Gen Z and Post-‐College Age Gen Z to hold each banking product.
Post-‐college Age Gen Z are significantly more likely than College Age Gen Z to hold each banking product, except for savings accounts
12 | GeneraIon Z and Money Survey
Q190 (2013)/Q191 (2014): Which of the following best describes you? Base: All (Gen (2014 N=1,001 2013 N=1,000); High School Age Gen Z (n=385); College Age Gen Z (n=326); Post College Gen Z (n=290) Note: Percentages do not add up to 100 due to rounding.
High School Age are least likely to follow a budget: 24% vs 42% College Age, 44% Post-‐College Age 45% of Gen Y follow a budget carefully
As Gen Z grows older, budgeIng habits are improving
I have a budget and follow it carefully
I have a budget but don't really follow it that closely
I don’t earn enough money to have a budget
I am too young to have a budget
I don't know how to budget
36
27 25 26
22 25
12
18
4 4
Significantly higher/lower than other group at 95% confidence
(%)
Gen Z 2014 Gen Z 2013
13 | GeneraIon Z and Money Survey
Balance due on credit card increases with age, and is significantly higher than last year
Q140: Approximately, what was the total balance due on your credit card on your last statement, before you made any payment? Base: All who indicate they have a credit card (Gen Z 2014 n=361; Gen Z 2013 n=285; High School Age n=45; College Age n=135; Post College Age n=181; 2014 Gen Y n=376) * Very low base (n=45).
All Gen Z 2014 $749
All Gen Y 2014 $1,946
High School Age Gen Z*
$406
College Age Gen Z $559
Post College Age Gen Z $975
All Gen Z 2013 $485
High School
Average Balance Due on Last Statement
2013
14 | GeneraIon Z and Money Survey
Four out of 10 Gen Z pay their credit card off in full monthly, fewer than in 2013
Q130: How many months of the year do you pay your credit card off in full when you receive your statement? Base: All who indicate they have a credit card (Gen Z 2014 n=361; Gen Z 2013 n=287; Gen Y 2014 n=376).
(%) Paying off Credit Cards in Full Every Month
Gen Z 2014
43% Gen Y 2014
43%
Significantly higher/lower than other group at 95% confidence
Gen Z 2013
59% 2013
15 | GeneraIon Z and Money Survey
As in 2013, Gen Z feel that saving money is very important. Gen Y feel similarly
Q180: At the present stage of your life, how important or unimportant is saving money to you? Base: All (Gen Z (2014 N=1,001; 2013 N=1,000); Gen Y (N=505).
Gen Y 2014
56%
College Age and Post College Age Gen Z are more likely than High School Age to say Very important (60%, 58% vs 53%, respecIvely)
(%) Saying Saving Money is “Very Important”
Gen Z 2014
57% Gen Z 2013
50% 2013
16 | GeneraIon Z and Money Survey
The vast majority of Gen Z’s parents have explained the importance of saving to their children, on average at age 14
Q182: Have your parents discussed with you the importance of saving or invesIng for the future? Base: All (Gen Z N=1,001).
Q184: At what age do you recall having this conversaIon? Base: Those whose parents discussed the importance of saving and investment (Gen Z n=842; Gen Y n=354). Note: Percentages do not add up to 100 due to rounding.
Age of Discussion (%) Have your parents discussed with you the importance of saving or invesLng for the future?
YES 84%
10 or Younger 11 to 13 14 or 15 16 or Older
18 18
29
22 20 24
35 33
Gen Z 2014 Gen Y 2014
Significantly higher/lower than other group at 95% confidence
Average Age of discussion: Gen Z: 14 Gen Y: 13
17 | GeneraIon Z and Money Survey
Parents are #1 resource for financial knowledge, by far
Q181: Which of the following would you say has been the number one resource to help you learn about money and saving or invesIng? All (Gen Z 2014 N=1,001).
Gen Z 2014 51%
(%) Saying Parents are # 1 Resource
Other resources above 5% threshold: Teacher or courses in school/college: 10% Websites/blogs about money, saving or invesIng: 7% A financial advisor: 7%
18 | GeneraIon Z and Money Survey
Four out of 10 Gen Z have taken a class about money/saving or invesIng
Q188: Have you ever taken, or do you plan to take, a class about money, saving or invesIng, in either high school or college? Base: All (Gen Z N=1,001; Gen Y N=505).
I’ve taken a class about money, saving or invesIng
I plan to take a class about money, saving or invesIng
I’ve never taken a class about money, saving or invesIng
38% 35% 20% 10% 42% 55%
Yes Yes No
Gen Z 2014 Gen Y 2014
19 | GeneraIon Z and Money Survey
If given a $500 gio over 9 out of 10 Gen Z will save at least some of it
Q740: If you were given $500 today, would you spend it or save it? Q745: What would you spend the money on? Q746: What would you save the money for? MulIple responses allowed. Base: All Gen Z (N=1,001).
Others
Save it for the educaIon of my child/children/other
dependent
Save towards a big Icket item
Save it for reIrement
Save it for nothing in parIcular
Save it for college/university/ further
educaIon
7
12
18
21
36
37
Others
Use it to cover living necessiIes (rent,
uIliIes, food)
Give it to your parent(s)/guardian(s)/
other relaIves
Use it to pay bills/debt
Use it to treat myself (clothes, restaurant,
show, etc.)
3
11
27
27
38
Save it All 40%
Save Some/ Spend Some
52%
Spend it All 8%
(%) I would save the money for… I would spend the money on…
Gen Y are significantly less likely to save the money for college (10%) or treat themselves (18%) but are more likely to use it to pay bills/debt (39%)
20 | GeneraIon Z and Money Survey
Gen Z’s usage of mobile banking, budgeIng and invesIng apps is growing
Q370 (2013): Which, if any, of the following types of applicaIons do you currently use on your smartphone, phablet or tablet? Q193 (2014): Which, if any, of the following types of applicaIons do you currently use on your smartphone or tablet? Base: All who use a smartphone, phablet (2013) or tablet (Gen Z 2014 n=886; Gen Z 2013 n= 774; Gen Y 2014 n=463).
55
47 33
21 19 8 13 8
2
Gen Z 2014 Gen Z 2013 Gen Y 2014
A banking app that allows you to check your account balances
A budget/saving app that helps you keep track of your spending and/or saving
An invesIng app that allows you to track your 401k or other investment accounts
(%) Using Each Type of App on their Smartphone or Tablet
Significantly higher/lower than other group at 95% confidence
INVESTING IN THE STOCK MARKET
22 | GeneraIon Z and Money Survey
Most Gen Z know liyle or nothing about how to invest. A quarter (24%) know at least a ‘reasonable amount’
Q300: Which of the following statements best describes what you have heard about invesIng in the stock market and what you know about how to do it? Base: All (Gen Z N=1,001).
I don't know
I have never heard of invesIng in the stock market
I have heard of invesIng in the stock market, but don't know how to do it
I know a small amount about how to invest in the stock market
I know a reasonable amount about how to invest in the stock market
I know a great deal about how to invest in the stock market
8
5
35
28
16
8
There are no significant differences between Gen Z and Gen Y
(%)
24
23 | GeneraIon Z and Money Survey
Only 1 out of 5 Gen Z believe that the stock market is a good place for their long term investments
Q320: I am confident in the stock market as a good place for my long-‐term investments (Indicate to what extent do you agree or disagree with this statement) Base: All (Gen Z N=1,001).
Agree
20% Neutral
52% Disagree
28%
There are no significant differences between Gen Z and Gen Y
(7 to 10 on a 10pt scale) (4 to 6 on a 10pt scale) (0 to 3 on a 10pt scale)
24 | GeneraIon Z and Money Survey
One out of every 5 Gen Z are already invested in the stock market
Q330: Do you currently invest in the stock market? Q340: At what age did you start invesIng in the stock market on your own? Base: All (Gen Z N=1,001; Gen Y N=505).; All who currently invest (Gen Z: n=198; Gen Y: n=182).
YES 20%
YES 36%
Gen Z 2014 Gen Y 2014
College Age and Post College Age Gen Z are significantly more likely than High School Age Gen Z to be invested in the stock market (22%, 27% and 12%, respecIvely)
Average Age of first investment in the stock market: Gen Z: 18 Gen Y: 24
25 | GeneraIon Z and Money Survey
Lack of knowledge about invesIng is the top reason for not invesIng in the stock market
Q331: Which of the following statements are reasons why you do not currently invest in the stock market? Base: Those not invested in the stock market (Gen Z n=803; Gen Y n=323). MulIple responses allowed.
A family member or friend has lost money in the past by invesIng in the stock market
I am not interested in the stock market
I think invesIng in the stock market is too risky
I am too young to think about invesIng in the stock market
I don’t have any money available to invest in the stock market
I don’t know enough about invesIng in the stock market
3
7
15
23
5
45
50
1
6
21
27
33
42
45
Gen Z 2014 Gen Y 2014
I have lost money in the past by invesIng in the stock market
(%)
Significantly higher/lower than other group at 95% confidence
26 | GeneraIon Z and Money Survey
8
8
11
13
13
14
14
14
16
45
Parents are, by far, #1 resource for knowledge about the stock market
Q350: From whom or what did you first learn about invesIng in the stock market? Base: All who are invesIng in the stock market (Gen Z n=198). Top 10 resources shown. MulIple responses allowed.
Parents/guardians
A class at college/university
Money, saving or invesIng websites or blogs
Friend
Another relaIve (not parent/guardian or sibling)
Teacher
A class at high school
A financial advisor
A connecIon on social media who discusses money (excluding family, friends, teachers, financial advisors)
TV/radio shows
Significantly lower for Gen Y (34%)
Significantly lower for Gen Y (8%)
(%)
27 | GeneraIon Z and Money Survey
Four out of 10 Gen Z say they are open to risk when invesIng in the stock market
Q360: Regarding the investments you make in the stock market, how would you characterize your level of risk (using 1 to 10 scale where 1 means not at all open and 10 means very open)? Base: Those who invest in the stock market (Gen Z n=198).
Open to Risk
41% Neutral
43% Not Open to Risk
16%
There are no significant differences between Gen Z and Gen Y
(7 to 10 on a 10pt scale) (4 to 6 on a 10pt scale) (1 to 3 on a 10pt scale)
28 | GeneraIon Z and Money Survey
Even if Gen Z could ask anyone in the world for advice, 1 out of 4 would turn to a family member
Q380: If you could ask anyone in the world for advice about money, saving or invesIng who would it be? Open-‐ended quesIon. Top 5 groups of people shown. Base: All (Gen Z N=1,001).
INCLUDING:
Bill Gates: 13%
Warren Buffet: 6%
Donald Trump: 4% Significantly higher for Gen Y: 14%
Significantly lower for Gen Y: 6%
3
Professor/Teacher
3
Friend
23
Family member (mother, father, aunt, cousin)
27
Millionaire/ Billionaire CEO:
4
Movie/TV/radio personality (eg. Oprah, Suze Orman,
David Ramsey)
(%)
Significantly lower for Gen Y: 12%
29 | GeneraIon Z and Money Survey
Only a quarter of Gen Z (24%) trust the major financial insItuIons and believe in their long-‐term stability
Q381: I trust the major financial insItuIons and believe in their long-‐term stability (To what extent do you agree or disagree with the following statement? Base: All (Gen Z N=1,001; Gen Y N=505).
Agree
24% Neutral
56% Disagree
20%
There are no significant differences between Gen Z and Gen Y
(7 to 10 on a 10pt scale) (4 to 6 on a 10pt scale) (0 to 3 on a 10pt scale)
HIGHER EDUCATION
31 | GeneraIon Z and Money Survey
Q500: How important or unimportant do you feel it is to obtain a higher educaIon in order to be successful in the future? For Gen Y the quesIon excluded the words “in the future”. Base: All (Gen Z 2014 N=1,001; 2013 N=1,000). Note: Percentages do not add up to 100 due to rounding.
Gen Z 2014 Gen Z 2013
As in 2013, Gen Z see higher educaIon as the key to success
Very unimportant
8
20
Somewhat unimportant
4 6
Neither unimportant or important
8 7
Somewhat important
21 14
(%)
Very important
Gen Y less likely to see college as ‘very important’ (47%)
60 54
Significantly higher/lower than other group at 95% confidence
Gen Y more likely to see college as ‘somewhat important’ (31%)
32 | GeneraIon Z and Money Survey
Q510: How unlikely or likely are you to pursue an undergraduate college degree (i.e. B.A. or B.Sc.)? Base: All (Gen Z 2014 N=1,001). Note: Percentages do not add up to 100 due to rounding.
Likely to go, in, or have gone
72%
Neutral
17% Unlikely or won’t go
10%
Will Gen Z go to college? A large majority are likely to go, or already have gone
There are no significant changes from 2013
33 | GeneraIon Z and Money Survey
Q520: How unlikely or likely are you to pursue an advanced college degree (i.e. Master’s, Ph.D., Doctor, Lawyer, Chartered Accountant, Engineer, etc.)? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000). Note: Percentages do not add up to 100 due to rounding.
Gen Z 2014 Gen Z 2013
What about pursuing an advanced degree? Half of Gen Z are likely to pursue an advanced college degree – a drop from 6 out of 10 in 2013
Neutral
53
Likely will, in, or have gone
61
23
Unlikely or Won’t go
23
18 22
Significantly higher/lower than other group at 95% confidence
(%)
34 | GeneraIon Z and Money Survey
Most Gen Z expect scholarships and grants will help them through college. Half of Gen Y who ayended college were awarded a scholarship or grant
Q530: How are you, do you expect to or did you pay for college? Base: All likely to go or have gone to college (Gen Z 2014 n=833; Gen Y 2014 n=387; High School Age Gen Z 2014 n=295; College Age Gen Z 2014 n=276; Post-‐College Age Gen Z 2014 n=262). Chart does not show response of “Other” given by 2% of respondents. MulIple responses allowed.
With assistance from scholarships, fellowships or grants
22
42
37
52
54
24
43
40
41
59
24
39
48
33
65
18
41
27
48
50
24
41
42
42
60
Gen Z 2014 Gen Y 2014 High School Age Gen Z 2014 College Age Gen Z 20414 Post-‐College Age Gen Z 2014
With assistance from student loans
With assistance from parent(s) / guardian(s), grandparents
By myself through savings or while working in college
My parent(s) / guardian (s) or other relaIves have paid/will pay in full
Significantly higher/lower than other group at 95% confidence
(%)
Post-‐College
College/High School
Post-‐College
Significantly higher for Gen Z in 2014 (24%) than in 2013 (14%)
Significantly lower for Gen Z in 2014 (42%) than in 2013 (55%)
35 | GeneraIon Z and Money Survey
Gen Z are more posiIve about college than Gen Y
25
48
19
64
19
57
Gen Z 2014 Gen Z 2013 Gen Y 2014
51 My college/university
educaIon was worth every penny invested*
Going to college in general is worth the cost as it helps
secure employment
I considered/am considering/delayed/going to college due to
how expensive it is/was
Q540: To what extent do you agree or disagree with each of the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505); All Gen Y who went to college (n=344). *QuesIon only asked to Gen Y who had been to college
(%) Agree (7 to 10 on a 10 point scale)
Significantly higher/lower than other group at 95% confidence
2013 Gen Y
Gen Y
36 | GeneraIon Z and Money Survey
Choosing a college? Courses come first; sports faciliIes last
Q525: Which of the following will have, or did have, the most impact on your choice of college/university? Please rank the items from most important to least important. Base: All likely to go to college/have gone to college (Gen Z n=833).
3.6 4.1 4.1
4.2
7.3
The courses offered by the
college/ university
The tuiIon fees charged
The locaIon of the college/ university
The athleIcs/ sport faciliIes of the college/ university
The academic reputaIon of the college/ university
More important for Gen Y (3.9)
Average ranking (Rank 1st to 9th)
4.5
Scholarship opportuniIes at the college/ university
4.6
The success of the college's/ university's graduates in finding good employment
6.0
The raIo of teachers to students in classes
6.8
The clubs and acIviIes available
More important for Females than Males
(3.4 vs. 3.8)
More important for Males than Females
(7.0 vs. 7.8)
37 | GeneraIon Z and Money Survey
Half of college students with student loans have funds leo over aoer all college/university-‐related expenses are paid
Q532: Thinking about how you spend/spent the money from your student loan, do you/did you typically have any money from your loan aoer you have/had paid for tuiIon, books and other college/university-‐related expenses? Base: All in/gone to college who used student loans (Gen Z n=177; Gen Y n=169).
YES 56%
YES 55%
Gen Z 2014 Gen Y 2014
38 | GeneraIon Z and Money Survey
3
5
26
17
34
76
7
18
38
39
40
80
Gen Z 2014 Gen Y 2014
Leoover student loan funds are most ooen used to pay daily necessiIes.
Q533: Typically, what do you/did you do with any money you had leo over from your student loan(s) aoer you have/had paid for tuiIon, books and other college/university-‐related expenses? Base: All who are in/have gone to college and had money leo over from their loans(Gen Z n=97; Gen Y n=93). MulIple responses allowed.
I pay/paid daily necessiIes
I spend/spent it on entertainment/treaIng myself
I save/saved it for a rainy day
I save/saved it towards reimbursing my loan
I give/gave it to my parents/guardians /others for helping me
pay for my schooling
I invest/invested it in the stock market
(%)
Significantly higher/lower than other group at 95% confidence
39 | GeneraIon Z and Money Survey
Q535: How much student loan debt do you currently have, or do you esImate you have accumulated up to this point? Base: All who know how much student debt they have (Gen Z n=137; Gen Y n=146).
Student debt currently owed/accumulated:
Average Student Loan Debt
$27,000 $29,400
Gen Z 2014
Gen Y 2014
40 | GeneraIon Z and Money Survey
Gen Z who are likely to go to college want to go straight there. With limitless money, a minority would travel first
Q550: Which of the following best describes your plans aoer high school? Q551: And if money wasn’t a concern, which of the following would most like to do aoer high school? Base: All high school Gen Z likely to go to college (n=232).
Go directly to college/university
Work to get experience prior to going to college/university
Take a break, when you don’t work or travel, prior to going to college/
university
Travel to get real-‐life experience
(%) Afer High School:
24
9
8
58
6
5
12
77
I plan to… If money was no object I would…
41 | GeneraIon Z and Money Survey
Aoer college, Gen Z expects to find a job as soon as possible, though half would travel if money was no object
Q560: Which of the following best describes your plans aoer college/university? Q561: And if money wasn’t a concern, which of the following would you most like to do aoer college/university? Base: All Gen Z college students and high school students likely to go to college (n=427).
Find a job as soon as possible
Pursue another degree
Travel for an extended period of Ime
Other
(%) Afer College/University:
3
47
25
25
2
6
18
74
I plan to If money was no object I would…
MOVING OUT OF HOME AND WORKING LIFE
43 | GeneraIon Z and Money Survey
Q610: At what age did you, or do you expect to permanently move out from living with your parents/guardians excluding any temporary relocaIon for studying or other purposes? Base: All (Gen Z N=1,001; Gen Y N=505). Note: Percentages do not sum to 100 due to rounding.
Gen Z expects to move out at 21
(%) ExpecLng to Move or Have Moved by Age Shown
26
26
14
23
17
21
11
15
31
14
0 20 40 60 80 100%
18 or under 19 or 20 21 or 22 23 or 24 25 or over
Gen Z 2014
Gen Y 2014
AVERAGE AGE 21
AVERAGE AGE 23
49% did/or expect to move out by age 20
40% moved out by age 20
There are no significant changes from 2013
1/2 of Gen Z expect to move out, or have moved out by age 20
Significantly higher/lower than other group at 95% confidence
44 | GeneraIon Z and Money Survey
67
50
59
63
55
59
Gen Z 2014 Gen Z 2013 Gen Y 2014
Majority of Gen Z believe they could go back home if needed, but over half are confident they won’t need to
Q630: To what extent do you agree or disagree with the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505).
(%) Agree (7 to 10 on a 10pt scale)
In the future, I know that I can always move back with my
parents/guardians if I can't afford to live on my own
I am confident that in the future, I won't need to move back with my
parents/ guardians due to my financial situaIon
Significantly higher/lower than other group at 95% confidence
Gen Y
Gen Y
45 | GeneraIon Z and Money Survey
Q635: At what age would you consider it embarrassing to sIll be living with your parents? Base: All (Gen Z N=1,001; Gen Y N=505).
Gen Z would be embarrassed to sIll be living at home at 28 years old
28 On Average:
Gen Z 9%
Gen Y 17%
Years Old Is Too Old
40 Years Old or Over
For Gen Y the average age is 31. There are no significant changes from 2013
Significantly higher/lower than other group at 95% confidence
46 | GeneraIon Z and Money Survey
Q660: At what age did you get your first paying job either full-‐Ime or part-‐Ime? Please exclude doing paid chores for a family member Base: All currently working or who have worked in the past and who gave an age of first employment (Gen Z 2014 n= 725; Gen Y 2014 n=483). Note: Percentages do not sum to 100 due to rounding.
Gen Z starIng to work at a younger age than Gen Y
(%) Who Started Work by Age Shown
0 20 40 60 80 100%
Gen Z 2014
Gen Y 2014
AVERAGE AGE 17
AVERAGE AGE 18
There are no significant changes since 2013 in age started working
22
26
26
30
33
39
20
6
12 to 15 16 17 to 20
21 or older
47 | GeneraIon Z and Money Survey
3
5
6
12
35
39
3
13
7
15
28
34
Gen Z 2014 Gen Z 2013
Money to save and spend are the top reasons for wanIng to work
Q670: Which one of the following was the main reason why you first started working? Base: All Gen Z currently working or who have worked in the past (2014 n=749; 2013 n=681).
I wanted money to spend
I wanted money to save
I wanted the experience of working
My parents/guardians told me to
I needed money to contribute to help the family/household
None of the above
(%) of Gen Z working or have worked Almost half of Gen Y (46%) first started working to have spending money
Significantly higher/lower than other group at 95% confidence
48 | GeneraIon Z and Money Survey
6
13
4
19
34
7
6
10
24
24
Gen Z 2014 Gen Z 2013
Saving for educaIon is the main goal for Gen Z who are working to save
Q671: What is the number one thing that you are saving for? (2013)/ When you first started working, what was the number one thing you were saving for? Base: All Gen Z who started working in order to save and gave a saving goal (2014 n=212; 2013 n=236). Top 5 reasons shown.
EducaIon
Car
Computer/electronics
Home/house
The future/future expenses
(%) of Gen Z working in order to save. Top 5 reasons
Significantly higher/lower than other group at 95% confidence
49 | GeneraIon Z and Money Survey
37 37 17 8
Q675: Thinking about when you start, or did start, your career, which will be, or was, more important to you: feeling inspired by the work that you do* or salary? Base: All (Gen Z 2014 N=1,001). Note: Percentages do not sum to 100% due to rounding.
Feeling inspired by their work is important to Gen Z
0 20 40 60 80 100%
Gen Z 2014
Feeling inspired much/
somewhat more
important
Feeling inspired and salary equal importance
Feeling inspired much/ some-‐
what less important
Don't know
74% say feeling inspired by their work is more important or equal to salary
3/4 of Gen Z rate feeling inspired by their work as equally or more important than their salary
There are no significant differences between Gen Z and Gen Y
50 | GeneraIon Z and Money Survey
The majority of Gen Z want a job that allows them to make a posiIve contribuIon to society
Agree
59% Neutral
34% Disagree
7%
Q676: When it comes to choosing a job, it is important to me that I choose a role that allows me to make a posiIve contribuIon to society. To what extent do you agree or disagree. Base: All Gen Z (N=1,001).
There are no significant differences between Gen Z and Gen Y
(7 to 10 on a 10pt scale) (4 to 6 on a 10pt scale) (0 to 3 on a 10pt scale)
51 | GeneraIon Z and Money Survey
If you could have any job in the world, what would it be…
Q679: If you could have any job in the world, what would it be? Top 10 jobs shown. Open-‐ended quesIon. Base: All (Gen Z N=1,001).
Significantly higher for Gen Z than Gen Y (4%)
Significantly higher for Gen Y (5%) than Gen Z
7
Computer Engineer/ Programmer/
Game designer/ animator
Placeholder
CEO/ business owner/ entrepreneur
Performer (musician, actor, actress, dancer)
Professor/ teacher
Engineer Psychologist/ therapist
Writer/author/ journalist
ArIst/ Designer
Athlete/ AthleIc trainer
or coach
5 5
4 4
3 3 3
2 2 Doctor (specialist,
GP, denIst)
(%) Top 10 jobs shown. Open-‐ended quesLon
52 | GeneraIon Z and Money Survey
Q680: Currently, which of the terms below best describes how you primarily earn money? If you fall in to both categories, please select the category that provides you with the greatest income. Base: All working (Gen Z n=545; Gen Y n=380).
Gen Z 2014 Gen Y 2014
If working, Gen Z and Gen Y are tradiIonally employed. Only 10% are self-‐employed/entrepreneurs
11 10
89 90
I am 'tradiIonally employed". I work for a company that I do not own, that pays me a
wage for the work I do
I am self-‐employed/a business owner/an entrepreneur. I work for myself and/or own a company or part of a company
(%) of those working
53 | GeneraIon Z and Money Survey
Q 680b: In your career, would you rather be tradiIonally employed, or self-‐employed/a business owner/ an entrepreneur? Base: All (Gen Z N=1,001; Gen Y N=505).
Gen Z are less likely than Gen Y to want to work for themselves
TradiIonally employed Self-‐employed/a business owner/an entrepreneur
42 36
64 58
(%) Who would rather be… Gen Z 2014 Gen Y 2014
Significantly higher/lower than other group at 95% confidence
54 | GeneraIon Z and Money Survey
Q 681: At each of the following ages, how much money do you expect to be, or were you, personally earning per year?. Average figure rounded to nearest thousand. Base: All excluding don’t know. Base sizes vary between 355 and 533 (Gen Z) and 226 and 322 (Gen Y).
Salary expectaIons for Gen Z have dropped from last year, and are now more in line with Gen Y’s expectaIons
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$32,000
$56,000
$73,000
$94,000
$95,000
$37,000
$65,000
$84,000
$104,000
$120,000
$29,000
$49,000
$72,000
$93,000
$105,000
First job out of college
30 years old
40 years old
50 years old
60 years old
Gen Z 2013 Gen Y 2014 Gen Z 2014 Average Actual/Expected Salary
RETIREMENT
56 | GeneraIon Z and Money Survey
56
44
32
43
12
14
Four out of 10 Gen Z don’t expect to be able to rely on social security when they reIre
0 20 40 60 80 100%
Gen Z 2014
Gen Y 2014
Agree (7 to10 on 10pt scale)
Neutral (4 to 6 on 10pt scale)
Disagree (0 to 3 on 10pt scale)
There is no significant change from 2013
Q700: I don't believe I will be able to count on social security or other government reIrement programs by the Ime I reIre (To what extent do you agree or disagree with the following statements?) Base: All (Gen Z 2014 N=1,001; Gen Y N=505).
Significantly higher/lower than other group at 95% confidence
57 | GeneraIon Z and Money Survey
A quarter of Gen Z (26%) feel that they are too young to start saving for reIrement
Q700: To what extent do you agree or disagree with the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505).
I am too young to start saving for reIrement
I expect to receive an inheritance from my parents/family
18
9
28
21
26
Gen Z 2014 Gen Z 2013 Gen Y 2014
n/a
(% Agree 7 to 10 on 10pt scale)
Gen Y Significantly higher for High School Age Gen Z (40%) than for College Age Gen Z (20%) and Post-‐College Age Gen Z (15%)
58 | GeneraIon Z and Money Survey
Q710: At what age do you think you should start saving for reIrement? Base: All Gen Z excluding “don’t know” (2014 n=853).
27 25
Years Old
Years Old
Gen Y and Post College Age Gen Z believe that saving for reIrement should start younger:
There is no significant change from 2013 (28 years old)
Gen Z believes they should start saving for reIrement at age 27
59 | GeneraIon Z and Money Survey
Q715: At what age do you expect to reIre? By reIre we mean receiving no income from either part-‐Ime or full-‐Ime employment and have no intenIon of working in the future. Base: All giving an age at which they expect to reIre, excluding don't know (Gen Z 2014 n=810; Gen Z 2013 n= 819; Gen Y 2014 n=411).
65 Years Old
64 Years Old
63 Years Old
62 Years Old
61 Years Old
60 Years Old
Gen Z 2014
Gen Z 2013
Gen Y 2014
Average Expected ReLrement Age
Gen Z and Gen Y are opImisIc regarding age of reIrement
Happy ReLrement
60 | GeneraIon Z and Money Survey
Both Gen Z and Gen Y expect to need to save $1MM by their reIrement age
Q720: And how much money do you think you'll need to have saved in order to reIre at the age you expect to? Base: All esImaIng an amount (Gen Z n=341; Gen Y n=231).
The majority, however, don’t know how much they’ll need to save (66% Gen Z, 54% Gen Y)
$970,000 $1,070,000
Average Amount Needed to Save
Gen Z 2014 Gen Y 2014
61 | GeneraIon Z and Money Survey
One out of 5 Gen Z have started saving for reIrement
Q711: At what age did you start saving for reIrement, if you have started? Base: All (Gen Z N=1,001; Gen Y N=505). All who have started saving for reIrement (Gen Z n=198; Gen Y n=292).
(%) Who have Started Saving for ReLrement Average Age (of those who have started)
20%
Gen Z 2014 Gen Y 2014
58% 18 Years Old
23 Years Old
Gen Y 2014 Gen Z 2014
62 | GeneraIon Z and Money Survey
Half (47%) of Gen Z believe that a savings account is the best way to prepare for reIrement
Q730: To what extent do you agree or disagree with the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505).
The best way to save for reIrement is to save money in a savings
account
33
20
25
33
18
14
11
44
25
18
17
47
Gen Z 2014 Gen Z 2013 Gen Y 2014
The best way to save for reIrement is to invest in the stock market
I plan to invest in the stock market by myself using an online pla�orm
I plan to have a financial advisor handle my investments for me
(%) Agree (7 to 10 on a 10 point scale)
Significantly higher/lower than other group at 95% confidence
Gen Y 2013
2013
Gen Y 2013
Gen Y
63 | GeneraIon Z and Money Survey
Q712: What percentage of your income do you currently contribute to your 401(k), 403(b) or other employer-‐sponsored reIrement account? Q713: At what age did you make your first contribuIon to your 401(k), 403(b) or other employer-‐sponsored reIrement account? Base: All with a 401(k), 403(b) or other employer-‐sponsored reIrement account (Gen Z n=89; Gen Y n=224).
If saving into a 401(k) or 403(b), Gen Z are contribuIng a higher proporIon of their salary than are Gen Y
(%) of Income Contributed to 401(k)/403(b) Average Age First Contributed
Significantly higher/lower than other group at 95% confidence
16
12
Gen Z 2014 Gen Y 2014
19
24
APPENDIX: STUDY SAMPLE CHARACTERISTICS
65 | GeneraIon Z and Money Survey
5
17
25 23
11
19
5
17
25 23
11
19
5
16
25 22
12
20
0
5
10
15
20
25
30
New England Mid-‐AtlanIc South Midwest Southwest West
Region
27
62
10 14
78
8
71
9 20
0
20
40
60
80
100
Employed Students Unemployed
Employment Status
13
34
53
23
34
44
0
10
20
30
40
50
60
14 to 16 years old 17 to 19 years old 20 to 24 years old
Gen Z Age Groups
50
6
43
2
58
3
34
4
18 11
68
2 0
10 20 30 40 50 60 70 80
High school or less
Technical degree
University degree or more
Prefer not to answer
EducaIon Levels
Base: All Gen Z (2014 N=1,001; 2013 N=1,000); All Gen Y (2014 N=505).
(%)
Study sample characterisIcs are:
Gen Z 2014 Gen Y 2014 Gen Z 2014
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-‐timer or sophisticated trader. Our clients want to take control, and we help them decide how – bringing Wall Street to Main Street for nearly 38 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com, or follow @TDAmeritradePR for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org)