When It Comes to Money, Millennials Bow to Peer Pressure
A new study from the American Institute of CPAs and the Ad Council shows that 78 percent of millennials base the way they handle their own money on their friends' financial habits.
The national survey, a launching pad for a new series of public service announcements called "Feed the Pig" that aims to get younger adults thinking about their future financial security, found widespread dependence on friends and family.
Far more than half (61 percent) still need money from their parents or other family members to make ends meet. They also rely on their friends for direction on lifestyle decisions:
- 66 percent of those polled say they want to keep pace with their peers on where they live.
- 64 percent strive to stay on par with their friends on the fashion/clothing front.
- Nearly two-thirds report feeling pressure to keep up with the types of places their friends eat and the type of gadgets they buy.
According to the survey, 70 percent of younger adults think financial stability means paying all their bills each month. Among the millennials, though, that goal is still a stretch. Not only do the majority still rely on Mom and Dad for financial help, but 45 percent needed to use a credit card to cover necessities (like food or a utility bill) during the past year.
%VIRTUAL-article-sponsoredlinks%Managing credit card debt has become a problem for this group: 28 percent report being contacted by a bill collector in the past year, and 24 percent missed a payment to a credit card or other debt repayment plan.
If you're looking for help from someone other than your friends for money management tips, FeedthePig.org was relaunched in October and includes a variety of tools such as personal finance calculators and action plans for achieving goals like paying off your debt, saving for a down payment on a house, and saving to start a family.
Michele Lerner is a Motley Fool contributing writer.