When it comes to money, millennials are less than confident about the markets.
According to Wells Fargo, 20 percent of young people said they will "never" be invested in the markets and 53 percent said they will "never be comfortable investing in the markets." The findings come from a June survey the bank conducted of more than 1,750 people ages 20 to 36.
"I think that lack of confidence is something that we really need to find a way to work through with them. If they continue at this rate, they will never have enough savings for retirement. Ever," Kristi Mitchem, Wells Fargo Asset Management CEO, told CNBC recently about the survey.
With average student debt now $34,144, up 62 percent over the last 10 years, it's not hard to understand that millennials aren't feeling great about their finances. The majority, 70 percent, also said the Great Recession made them skeptical of stock market experts.
For the sake of their future happiness, it may be time to get over these anxieties.
Source: Wells Fargo 'Millennials, Money, and the Happiness Factor' study
Wells Fargo developed a Positive Financial Indicator to measure how well a person is doing financially. It consists of five attributes of an individual in good financial standing:
- I have enough money to be able to save for future needs.
- I am saving enough for retirement.
- I feel in control of my financial life.
- I take an active role in setting and achieving goals.
- I am able to pay for monthly expenses.
Interestingly, the bank found that those who score higher tend to be happier and more confident with their money.
"So really, really important — engagement actually drives happiness. And that's a connection that millennials don't understand," Mitchem said. "Finances do matter to them."
The study also found that feeling financially secure is important to 98 percent of the respondents.
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