America’s Millennial generation is turning out to be very different from earlier generations in a surprisingly practical way — they’re focused on financial security.
That was the conclusion of a presentation Thursday by Navy Federal, the worlds’ largest credit union, which counts four in ten of its members as Millennials.
The credit union’s corporate economist said the generation was indelibly marked by the September 11 attacks and later the Great Recession and came away focused on financial security.
“Millennials realize that almost all of them will never receive a pension,” said Alan MacEachin. “They simply can’t put their long-term security in the hands of government or employers.”
MacEachin said Millennials’ approach to financial security is defined by three characteristics:
- Avoid risky investments
- Prioritize paying down debit
- Saving to achieve long-term goals
Speaking at the National Press Club in Washington, MacEachin displayed a chart showing how America’s savings rate has reversed a decade-long downward trend and is now headed upward.
He said the increase in savings is not surprising since Millennials spent their formative years in the “worst economic time since the 1930s.”
“During this period, unemployment almost doubled. Eight and a half million jobs were lost in a year,” he noted. “This was a huge event that doubtless had an impact on Millennials’ lives.”
Navy Federal has been expanding its branches in San Diego as the Navy pivots to Asia and increases the number of locally based ships. Cutler Dawson, president and CEO of the credit union, said his team is particularly focused on military millennials, who he noted have had an “accelerated lifestyle.”
They’re working earlier, marry earlier and have children earlier than their civilian counterparts, according to Navy Federal surveys, and the credit union is adjusting its services accordingly.
“We want to be the place that they can go to and trust,” Dawson said.
The credit union unveiled a new website Thursday designed to help Millennials build their financial literacy.