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Attitudes toward money, education and working life
Young Money Survey
About TD Ameritrade Holding Corporation
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or www.amtd.com for more information, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
TABLE OF CONTENTS
COLLEGE LIFE
FAMILY LIFE…………………………..
WORKING LIFE……………
APPENDIX…………………………………
3
12
16
24
…….... . . . . . . . . . . . . . . . . . . . . .……..
. .………….…..
…………………..…..…..
……….... . . .
College Life
Young millennials who are at college, or have been, hold $10,205 in student debt, on average, and expect to have paid it off by age 35
Q430. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; South n=182; Midwest n=135; Southwest n=107
Q431. Base: All Young Millennials with more than zero student loan debt n=449
How much student debt do you have? By what age do you
expect to have paid off your student debt?
• Young millennials are defined as ages 20 to 26 • Young millennials at college have slightly higher debt, on average, than those who have left ($11,475 vs. $9,640) • One in 7 (14%) young millennials with student debt expect they will be 50 or older when their debt is fully paid off
42
9 16
11 15
6
0
10
20
30
40
50
$0 $1 to $1,000 $1,000 to $9,999 $10,000 to $19,999 $20,000 to $49,999 $50,000 or over
Average: $10,205
32 40
14 14
0
10
20
30
40
50
20-29 30-39 40-49 50+
Average: 35
At College: $11,475 Post-College: $9,460
South: $8,120 Midwest: $13,425 Southwest: $6,915
At College: 38 Post-College: 34
%. Averages rounded to nearest $5
Young Millennials
Young millennials’ college education is funded through financial aid, scholarships/grants/bursaries and student loans
Q420. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 city n=243; Reside elsewhere n=519; Suburban n=274;
Midwest n=137; Mid-Atlantic n=131. Multiple responses allowed
How are/did you/your parents/guardians pay for your college, at
least partially?
42
40
40
30
30
24
12
9
7
6
0 20 40 60 80
With financial aid
With scholarship/grants/bursaries
With student loans
Working a part-time job while attending college (e.g. waiter/waitress, cashier,delivery driver, etc.)
From the savings of your parents/guardians
From your savings
Work study
From a 529 plan owned by your parents/guardians or another tax-deferredcollege savings plan
From a 529 plan owned by your grandparents or another tax-deferred collegesavings plan
I don't know
• Four in 10 (42%) young millennials who are at college, or have been, paid for their college education with financial aid • Half (52%) of those who are currently at college are paying for their education through financial aid, while for post-college
millennials, over a third (36%) used financial aid
At College: 48% Post-College: 36%
At College: 52% Post-College: 36%
Reside in top 10 city: 33% Reside elsewhere: 46%
Midwest: 50%
Midwest: 50%
Suburban: 47%
Suburban: 34%
Mid-Atlantic: 49%
Reside in top 10 city: 31% Reside elsewhere: 44%
%
Young Millennials
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Which of the following describe how you view the cost of your
college/trade school education?
57
26
23
17
5
0 20 40 60 80
The cost of my college/trade school education is a good investment in myfuture
Choosing an expensive college/trade school with a good reputation isn'tworth the extra money
The education I receive will never be worth the amount of student debt Ihave/will have
Even if college/trade school cost twice as much as it does, I would still go tocollege/trade school
None of the above
• About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
Suburban: 61%
%
Young Millennials
Four in 10 (39%) young millennials have delayed purchasing a home due to student debt
Q435. Base: All Young Millennials with more than zero student loan debt n=449; Post-College n=280; At College n=169
Multiple responses allowed
Has your student debt caused you to delay any of the
following?
39
31
27
25
21
26
0 20 40 60 80
Buying a home
Saving for retirement
Moving out of your parents' home
Having children
Getting married/civil ceremony
None of the above
• Three in 10 (31%) young Millennials have delayed saving for retirement, moving out of their parents house (27%) and a quarter (25%) have delayed having children due to student debt
At College: 31% Post-College: 43%
%
Young Millennials
“Work to earn some money while you are at college” is the #1 piece of advice post-college young millennials would give to their 18 year-old selves
Q810. Base: All post-college Young Millennials n=480; Suburban n=157; Reside in top 10 city n=174
What one piece of advice would you give to your 18-year-old self regarding college?
17
14
13
10
8
8
8
8
4
2
8
0 5 10 15 20 25 30
Work to earn some money while you are at college
Work as hard as you can at college. You can enjoy yourself later
Pick the right program of study to secure employment
Get to know yourself before starting college
Try and get an internship while at college
Pay off your credit cards in full every month
Only take the bare minimum of student loans
Don't work too hard at college. Remember to enjoy yourself
Take your time before starting college
Don't go to college
None of the above
• Top advice to their 18 year-old selves regarding college included working as hard as you can at college (enjoy yourself later), closely followed by picking the right program of study to secure employment
Suburban: 24%
Suburban: 17%
Reside in top 10 city: 11%
%
Study harder and spend less money while in college are the top 2 changes post-college young millennials would carry out if they could do it all again
Q440. Base: All post-college Young Millennials n=480
Multiple responses allowed
If you could do it all again regarding college, which of the
following changes would you make?
26
24
22
19
19
19
18
16
15
15
6
6
6
10
0 5 10 15 20 25 30
Study harder
Spend less money/get into less debt
Choose a different major – that is in a higher-paying field
Work while studying
Study abroad
Choose a different major – that is more interesting/ could make a difference
Try to find time to have more fun
Choose a different major – that is in a high-demand field
Choose a different college
Get an internship while at college
Not go to college
Go to trade school
Not work while studying
None of the above
• About a quarter of young millennials who have been to college say that if they could do it all again they would study harder (26%) and spend less money/get into less debt (24%)
• Two in 10 (22%) would choose a different major for one that is in a higher-paying field
%
Young Millennials
Three in 10 (30%) post-college young millennials regret buying new books instead of used ones and (29%) regret not choosing the right program of study – the latter is
their #1 single regret
Q800a/b. Base: All post-college Young Millennials n=480; Reside in top 10 city n=174; Reside elsewhere n=306; Urban n=273; South n=110
.
What are your biggest financial regrets from your college years?
What is your #1 financial regret from your college years?
30
29
26
23
22
21
19
16
15
5
29
0 20 40 60 80 100
Buying new books instead of used
Not choosing the right program of study
Taking out too much money in student loans
Not using my student loan wisely
Not seeking out a program with an internship
Not working during the school year
Spending the additional funds needed to go to a well-known/well-regarded school
Attending a 4-year college instead of 2-year or 3-year college
Spending money to be part of a fraternity/sorority
Something else
I have no financial regrets from my college years
• About a quarter (26%) of post-college young millennials regret taking too much money in student loans and over 2 in 10 (23%) regret not using their student loan wisely
• Three in 10 (29%) have no financial regrets from their college years
#1 Regret
11%
13%
10%
7%
7%
6%
5%
5%
4%
4%
29%
%
Young Millennials
Reside in top 10 city: 37% Reside elsewhere: 26%
South: 35%
Urban: 26%
South: 25%
South: 20%
South: 23%
Almost 6 in 10 (57%) young millennials who are at college or have been agree that the cost of their education is a good investment in their future
Q410. Base: All Young Millennials At College and Post-College n=762; At College n=282; Post-College n=480; Reside in top 10 City n=243; Reside elsewhere n=519; Suburban n=274
Which of the following describe how you view the cost of your
college/trade school education?
57
26
23
17
5
0 20 40 60 80
The cost of my college/trade school education is a good investment in myfuture
Choosing an expensive college/trade school with a good reputation isn'tworth the extra money
The education I receive will never be worth the amount of student debt Ihave/will have
Even if college/trade school cost twice as much as it does, I would still go tocollege/trade school
None of the above
• About one-quarter (26%) of college/post-college young millennials feel that choosing an expensive college/trade school with a good reputation is not worth the extra money
At College: 17% Post-College: 26%
Reside in top 10 city: 21% Reside elsewhere: 15%
Suburban: 61%
%
Young Millennials
Family life
Almost half (47%) of young millennials did not or do not expect to move back with parents after college, and 2 in 3 (65%) teens say the same
Q600. Base: All college and post-college Millennials n=401; All college Teens and pre-college Teens who expect to go to college n=251; Post-College Millennials n=480; College
Millennials n=282; Reside in top 10 city: Millennials n=243; Mid-Atlantic Millenials n=131; Southwest Millennials n=108; Mid-Atlantic Teens n=121; West Teens n=161
Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
After the completion of college/trade school, do you expect to, or did you, move back into
the home of your parents/guardians?
• Almost 4 in 10 (37%) young millennials moved, or plan to move, back into their parents’ home after college • Almost half (48%) of post-college young millennials moved back in with parents after college • Over a third (35%) of Teens expect to move back into their parents’ home after college
37
15
47
35
65
0
10
20
30
40
50
60
70
80
90
100
Yes, I moved back to my parents home after college Yes, I expect to move back into my parents home aftercollege
No, I did not/do not expect to move back into my parentshome after college
Young Millennials Teens
Post-College : 48%
At College : 26% Post-College : 9%
Reside in top 10 city: 44%
Reside in top 10 city: 37%
Mid-Atlantic: 49%
Southwest: 56%
Mid-Atlantic: 34%
Mid-Atlantic: 55%
West: 73%
Mid-Atlantic: 45%
%
On average young millennials became or expect to become financially independent at 23 years old
• Teens expects to become financially independent one year younger, at age 22 • Over 1 in 7 (16%) teens never expect to become financially independent
At what age did you become, or expect to become, completely
financially independent from your parents/guardians?
Q610. Base: All Young Millennials n=1,001; All Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College
n=138; No College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753
Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
I became/expect to become financially independent at age ….
24
44
21
3
8
38
33
10
2
16
0
5
10
15
20
25
30
35
40
45
50
20 or younger 21 to 25 26 to 30 Over 30 Never
Young Millennials Teens
Average age: 23 Average age: 22
Pre-College: 18% At College: 9%
No College: 10%
Pre-College: 32% At College: 41% No College: 64%
At College: 17% Post-College: 22% No College: 37%
Reside in top 10 city: 50% Reside elsewhere: 42%
Reside in top 10 city: 45% Reside elsewhere: 36%
%
Young millennials would be embarrassed to still be living with their parents at age 28
• Meanwhile teens feels that the maximum acceptable age to be living with their parents is 26 years old
At what age would you consider it embarrassing to still be living with your parents?
Q620. Base: All Young Millennials n=1,001; All Teens n=1,000
It would be embarrassing to still be living with my parents at age ….
5
23
34
27
11 13
30
27
21
9
0
5
10
15
20
25
30
35
40
Below 20 20 to 24 25 to 29 30 to 34 35 or older
Young Millennials Teens
Average: 28 Average: 26
%
Working life
17
Young millennials are most likely to be interested in a career in medicine,
whereas teens are most likely to be interested in the arts
Q510. Base: All Young Millennials n=1,001; All Gen Z n=1,000; Young Millennials: College n=282; Post-College n=480 No College n=239
Arrows indicate a significant difference between Young Millennials and Gen Z at 95% confidence
Among the following, which field of work are you the most interested in?
16
9
12
6
9
16
17
13
10
7
0 10 20 30 40
Medical
The arts
Technology
Engineering
Business
• Teens are almost twice as likely (17%) as young millennials (9%) to be interested in working in the arts • Young millennials are more interested than teens in business (9% vs. 7%) and banking/finance/accountancy (6% vs 2%)
6
5
6
5
6
6
6
4
5
2
0 10 20 30 40
Science and research
Law
Teaching
The media
Banking/finance/accountancy
At College: 10% Post-College: 6% No College: 3%
Young Millennials Gen Z%. Top 10, one answer only
Almost 3 in 10 young millennials (29%) and teens (27%) prefer to work in a corporate/business environment
Q520.Base: All Young Millennials n=1,001; All Teens n=1,000; College Millennials n=282; Post-College Millennials n=480; No College Millennials n=239; Midwest Millennials n=182; No
College Teens n=151; Pre-College Teens n=711; Suburban Teens n=320; Urban Teens n=421
Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
In which of the following ways would you prefer to work?
29 26
12 8
13 12
27 24
11 8 9
21
0
10
20
30
40
50
60
70
80
90
100
In a corporate/businessenvironment
Running your own business Independent/freelance or'Gig economy' work (i.e.short-term, paid-per-job)
In a start-up In another way I don't know
Young Millennials Teens
• About one-quarter of young millennials (26%) and teens (24%) prefer to be running their own business • Only 1 in 10 young millennials (12%) and teens (11%) have a preference for independent or gig economy work – though almost
2 in 10 (18%) No College Teens are interested in such work
No College: 34% No College: 18%
Pre-College: 9% No College: 18%
No College: 19% Post-College: 33%
No College: 33% Post-College: 20%
Midwest: 39% Midwest: 20%
Suburban: 32% Suburban: 19%
%
Young millennials expect to work for 3 years, on average, before being promoted and teens expect to work for 4 years. Both young millennials and teens expect to switch
employers every 6 years
Q530. Base: All Young Millennials n=1,001; All Teens n=1,000
Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
How long would you expect to be in a job before you got promoted? And how long before you move
to a different employer?
• Teens who are at college expect to stay with an employer for 8 years
8
22
28
20 16
6 7
19
27
20 19
8
0
5
10
15
20
25
30
Less than 1 year 1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10 10 years or more
9 5
14 17
35
20
9 7 11
19
33
22
0
10
20
30
40
Less than 1 year 1 year or more, less than 2 2 years or more, less than 3 3 years or more, less than 5 5 years or more, less than 10 10 years or more
Average (years): 3 Average (years): 4
Average (years): 6 Average (years): 6
Time before getting promoted
Time before changing employer
At College: 33
Young Millennials Teens%
At College: 8
How much money were you/do you expect you will be earning per year,
before taxes, at each of the time periods below?
Average, excluding outliers, rounded to nearest $5
Young Millennials and teens both expect to earn over $40,000 per year at age 30 and over $65,000 at age 40
• Young millennials who are at college or have been to college expect higher annual wages at age 30 (both groups expect $45,000+) than those who have not been to college (who expect $26,230)
• Young millennials who reside in one of the top 10 largest cities in the US expect much greater annual wages at age 40 ($84,260) than those who live elsewhere ($62,690)
Q130. All: Young Millennials n=1,001, Teens n=1,000; Young Millennials: At College n=282; Post-College n=480; No College n=239; Teens: Pre-College n=711; At College n=138; No
College n=151; Reside in top 10 city: Young Millennials n=293; Teens n=247; Reside elsewhere: Young Millennials n=708; Teens n=753. All who are still in school/did not leave
education after high school: Young Millennials n=761; Teens n=883
$9,225
$26,575
$44,090
$69,230
$8,435
$24,930
$47,335
$76,910
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
In your first job after high school In your first job after college/trade school At age 30 At age 40
Young Millennials Teens
No College : $26,320 At College: $52,770
Post-College: $47,835
No College : $55,765 At College: $71,895
Post-College: $74,385
Reside in top 10 city: $84,260 Reside elsewhere: $62,960
Suburban: $55,890
Base: All who are still in school/did not leave
education after high school
More than 7 in 10 (76%) post-college working millennials use their degree on a regular basis
Q460. Base: All post-college Millennials who are working n=432; Urban n=246
To what extent are you using your degree in your current
role/position?
• Over a third (35%) say they use their degree constantly, 2 in 10 (20%) use it frequently/several times a week and another 2 in 10 (21%) use it several times a month
35
20
21
13
11 Constantly/every day
Frequently/severaltimes a week
Sometimes/severaltimes a month
Rarely/several timesa year
Never
Use degree on a regular basis: 76%
Urban: 24%
%
Young Millennials
Eight in 10 (80%) post-college working millennials deem their degree important in getting their current job
Q470. Base: All post-college Millennials who are working n=432; Reside in top 10 city n=162; Reside elsewhere n=270
How important was your degree in getting your current job?
• Three in 10 (28%) say their degree was essential, 3 in 10 (29%) say it was very important in getting their current job and 2 in 10 (22%) say it was somewhat important
28
29
22
8
10 2 Essential
Very important
Somewhat important
Not very important
Completelyunimportant
I don't know
80%
Reside in top 10 City: 35% Reside elsewhere: 26%
%
Young Millennials
Young millennials and teens want similar things out of life
Q830. Base: All Young Millennials n=1,001; All Teens n=1,000; At College Young Millennials n=282; Post-college Young Millennials n=480; South Young Millennials n=245; Pre-College
Teens n=711; At College Teens n=138; Rural Teens n=126; Southwest Teens n=107; West Teens n=211
Arrows indicate a significant difference between Young Millennials and Teens at 95% confidence
65
70
35
30
• Young millennials and teens prefer owning a home (respectively, 65%, 70%) over travelling (35%, 30%), they prefer flexible work hours (87%, 89%) to telecommuting (13%, 11%) and believe that contributing to a retirement account (65%, 53%) is more important than donating to charity (35%, 47%) – though the difference is not as pronounced for teens
• Both groups marginally prefer having a high paid job (55%) over having a job that makes a difference (45%)
What is, or would be more important to you?
Having money to travel
Owning a home
Young Millennials Teens
87
89
13
11
Having flexible work hours
Telecommuting
55
55
45
45
Having a high paid job
Having a job that makes a difference
35
47
65
53
Donating to charity
Contributing to your retirement account
At College: 57% At College: 43%
Southwest: 79% Southwest: 21% At College: 59% At College: 41%
Post-College: 59% Post-College: 41%
Pre-College: 92% Pre-College: 8%
West: 93% West: 7%
South: 42% South: 58%
Rural: 38% Rural: 62%
%
Appendix
This survey was conducted by Head Solutions Group on behalf of TD Ameritrade Holding Corporation.1
The statistical margin of error for the total sample of N=2,001 American adults within the target group is +/- 2.19 %.2 This means that in 19 out of 20 cases, survey results will differ by
no more than 2.19 percentage points in either direction from what would have been obtained by the opinions of all target group members in the U.S. Sample was drawn from major
regions in proportion to the U.S. Census.
1 Head Solutions Group (U.S.) Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services. 2 Assumes survey participants are the same as non participants.
Note: Percentages may not add up to 100 due to rounding.
New England
6%
Mid-Atlantic
17%
South
26%
Southwest
12%
West
21%
2,001 Young
Americans (half Young
Millennials, age 20-26
and half Teens, age
13-19)
Online
Survey
March 17 to 22,
2017
Average time to
complete survey:
15 minutes
Head Solutions Group
on behalf of TD
Ameritrade Holding
Corporation1
48%
Male
52%
Female
Midwest
18%
WHEN WHAT WHO
CONDUCTED BY
Research Method
Throughout this report, arrows indicate a significant difference
between Young Millennials and Teens.
Green callouts show significant differences within Young
Millennials and yellow callouts show significant differences within
Teens. The categories studied for significant differences are
defined on the next slide.
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