Home » whiteboard » Flashpoint: Financial Principles for Millennials

What is Flashpoint?

A flashpoint is a critical stage in a process, event, or situation at which action or change occurs; considered the "moment of truth."

This series represents a "call to action" of the American public and to the financial professionals who serve them.

Why focus on millennials?

  • This group, estimated to be the 70 million people born between 1980–2000, is similar in size to the baby boomer generation.
  • The oldest millennials are now 33 yrs. old; representing the average age of a typical new client for financial services products.
  • Where are they getting their information? Consider that the largest percentage of today's media coverage is serving the baby boomers – addressing retirement strategies, earning the most in a low-interest environment, etc.
  • Who is making it their mission and purpose to help this generation think about establishing the habits and rituals of sound financial planning?
  • What about succession planning? This generation offers a solution to our aging and declining field force, while providing a critical connection to this valuable market.
  • It's OUR RESPONSIBILITY to fill the gap and we need to move fast!



About the Research


In partnership with Texas Tech University, we conducted two research projects to begin our work effort:

Part I: Financial Literacy
First, we needed a baseline understanding of our starting point with this generation. Using the highly regarded FLAT evaluation, we assessed the financial literacy of millennials and compared their collective scores across other generations. The results? Well, that depends – is your glass half empty or half full?

Part II: Benchmark Ratios
Next, we wanted to find out: given the many changes that have taken place in society and in the financial environment – have financial planning recommendations used by credentialed professionals changed in the past 20 years?

For example –

  • What is the recommended savings rate for a millennial?
  • How much liquidity are they expected to maintain?
  • What is an appropriate level of debt?

With close to 1,000 advisors weighing in, the end result is a valuable, credible benchmark formulas tool that you can use as a guide when planning for your clients.

What to expect?
In addition to our white paper research, we will feature audio clips of our experts explaining key principles and take--aways. Our site will also feature an interactive "Meet a Millennial" section, featuring sales and recruiting ideas from YOU!

Related Links

The ideas expressed within these links have not been approved or endorsed by The Granum Center or The College. They are provided with the intent of expanding perspective and/or provoking thought.

A generation larger than the boomers: Overlook them at your own risk. Vanessa De La Rosa.Here's some good news for advisors (a rarity, I know): There is a generation of investors who crave financial education more than any other age group and who stand to inherit $30 million over the next 30 years. This generation is larger than the baby boomers and is over one-and-a-half times more eager to pass along wealth to subsequent generations. Who are these prospective clients?
Read more »


How to Wow Generation Y Clients. Dave Grant. Financial Planning. When it's time to collect client information, have this process be driven by one of your younger associates, if possible—making that person the secondary contact, after you. This accomplishes two goals: It not only lets Gen Y consumers know that you work with their generation, but it also says you trust this generation to help you run your practice.
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Attracting Younger Generation Clients. Lorie Konish. Financial Planning. Only about 17% of clients' children typically stay with their parents' financial advisor.
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Younger Investors Catching Up in Wealth. Margarida Correia. Financial Planning. Over the next couple of years we're going to see more Gen Y and Gen X investors crossing the $100,000  threshold and becoming increasingly important for manufacturers and distributors.
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Big challenge for advisers: Helping millennials with inheritances. Emily Yang. Investment News. In the next three to four decades, the millennial generation is expected to receive more than an estimated $30 trillion from their boomer parents.
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Planning Events to Attract Millennials. Cam Marston. Investment News. Article with tips and other general information.
Read more »