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June 18, 2014

GENERATION Z AND MONEY SURVEY 2014 Understanding Tomorrow’s Investors

TABLE OF CONTENTS

Research Method 3 Key Storylines 4

Future Concerns and ExpectaIons 6 Financial Holdings and AMtudes 10

InvesIng in the Stock Market 21 Higher EducaIon 30

Moving Out of Home and Working Life 42

ReIrement 55 Appendix: Study Sample CharacterisIcs 65

Disclosures 66

3 | GeneraIon Z and Money Survey

RESEARCH METHOD

The staIsIcal margin of error for the total sample of N=1,001 GeneraIon Z is +/-‐ 3.1%2. This means that, in 19 out of 20 cases, survey results will differ by no more than 3.1 percentage points in either direcIon from what would have been obtained by the opinions of all target group members in the U.S. For the total sample of N=505 GeneraIon Y the staIsIcal margin of error is +/-‐ 4.4%. Sample was drawn from major regions in proporIon to the U.S. Census A previous wave of this research was conducted in 2013 and is used as a comparison throughout this report. The 2013 survey was conducted among N=1,000 GeneraIon Z aged 14 to 23, from April 25 to May 6, 2013, by Head SoluIons Group on behalf of TD Ameritrade Holding CorporaIon1. Sample was drawn from major regions in proporIon to the U.S. Census. The staIsIcal margin of error for the total sample of N=1,000 in this previous wave is also +/-‐ 3.1%2%. 1 Head SoluIons Group (U.S.) Inc. and TD Ameritrade Holding CorporaIon are separate, unaffiliated companies and are not responsible for each other’s products and services 2 Assumes responders are the same as non-‐responders and that panelists are the same as non-‐panelists Note: Percentages do not add up to 100 due to rounding.

New England

12%

Mid-‐AtlanIc

17%

South

25%

Southwest

11%

West

11%

WHO 1001 Gen Z, born between

1990 and 1999… Now 15 – 24 years old

505 Gen Y, born between 1977 and 1989…

Now 25 – 37 years old

WHAT Online Survey

WHEN April 30 to

May 12, 2014

Average Ime to complete survey:

15 minutes

CONDUCTED BY Head SoluIons Group

on behalf of TD Ameritrade Holding

CorporaIon1

50% Male

50% Female

Midwest

22%


KEY STORYLINES

•  The vast majority (84%) of Gen Z’s parents have spoken to their children about the importance of money, saving and invesIng, and largely by the age of 15. This appears to have results: 6 out of 10 Gen Z (57%) say that saving money is very important to them

•  Though 4 out of 10 Gen Z (38%) have taken a class about money, saving and invesIng and 1 out of 5 (20%) plan to take a class soon, it is Gen Z’s parents who are, by far, their main resource for learning about money, saving and invesIng. Half of Gen Z (51%) say their parents are their #1 resource and only 10% say a teacher or course at school or college is their #1 resource

•  Gen Z are not yet investors: only 1 out of 5 (20%) currently invest in the stock market

•  There is some evidence of skepIcism: 3 out of 10 (28%) don’t agree that the stock market is a good place for their long-‐term investments. However the main reasons for not invesIng in the stock market are a lack of knowledge (45%) and a lack of money (42%)

Gen Z’s Parents Provide A Sound Financial FoundaLon Gen Z Is Not Yet Ready To Invest


KEY STORYLINES

•  Almost half (44%) of Gen Z do not believe that they can count on social security when they reIre. However, only 1 out of 5 (20%) has started saving for reIrement and, on average, Gen Z believe they don’t need to start saving for reIrement unIl age 27

•  Gen Z could learn from Gen Y, who believe saving should start at age 25. However, Gen Y are not seMng a perfect example: only 6 out of 10 (58%) are currently saving for reIrement. Gen Z and Gen Y are both opImisIc about reIrement and expect to reIre at age 62 and 63 respecIvely

•  On average, Gen Z and Gen Y both expect they will need to save $1MM to reIre when they want to. Half (47%) of Gen Z think that saving in a saving account is the best way to reach that goal and only 1 out of 5 (17%) think invesIng in the stock market is the best way to save for reIrement. Gen Y are more realisIc, though sIll only a quarter (25%) believe that invesIng in the stock market is the best way to save for reIrement

•  As in 2013, higher educaIon is very important to Gen Z and the majority (72%) expect to go to college or have done so

•  Three quarters (77%) of Gen Z who are planning to go to college expect to go straight there aoer high school. If money was no object the proporIon planning to travel between high school and college would rise from 6% to 24%

•  The courses offered by the university or college, the tuiIon fees charged and the locaIon are the most important factors in Gen Z’s choice of post-‐secondary insItuIon. Overall ,Gen Z rated athleIcs and sports faciliIes as the least important factor of those evaluated in this survey.

Gen Z UnrealisLc About ReLrement Planning Gen Z Strongly Values Higher EducaLon

FUTURE CONCERNS AND EXPECTATIONS


Significantly higher/lower than other group at 95% confidence

Q750: What are your biggest concerns about today’s economy? Base: All Gen Z, excluding blank responses (2014 n=933; 2013 n=994). Open-‐ended quesIon. Only top 5 responses shown so percentages do not sum to 100%.

Jobs/ Unemployment

Instability/Uncertainty/ Economy geMng worse

Government/Taxes/ Social security/Healthcare

Living comfortably/ Not having enough money

InflaIon/Rising cost of living

Gen Y has the same top 5 concerns as Gen Z

Gen Z 2014 Gen Z 2013

Gen Z worries about jobs and unemployment … but to a lesser extent than last year

25

34

17

11 10 10 9 7

10 8

(%)


Gen Z are concerned …

Q192: Please indicate the degree to which you agree or disagree with each of the following statements. Base: All (Gen Z 2014 N=1,001; Gen Y (N=505).

% Agree (7 to 10 on a 10 point scale)

Significantly higher for Gen Y (29%)

36

...about not being able to put money away for reIrement

36

...I won't be able to afford College /

higher educaIon (Not asked of Gen Y)

44

...about having a large student loan balance when I finish school (Not asked of Gen Y)

15

...that I am accumulaIng too

much credit card debt

Increased significantly from 2013 (39%).

In 2014, significantly higher for Gen Y (64%)

44

...about not being able to count on social security or other similar government reIrement programs

37

...about having to financially support my

parent(s) / guardian(s) when they get older

(42% for Gen Y; not significantly different to Gen Z)

Significantly higher for Gen Y (49%)

Sixty five percent of Gen Z disagree (49% of Gen Y)

One third of Gen Y (34%) say they are concerned about their ability to pay off their student loans.


Q400: The list below includes a range of different events that may or may not happen to people throughout their lives. Please indicate what order these events have happened to you, or in what order you expect them to happen to you. Base: All Gen Z 2014 expecIng each life event will occur, ranging from n=836 to n=961.

Gen Z expect their lives to follow a tradiIonal path

2.0

Start a full-‐Ime job

2.7

Buy a car

3.8

Pay off student debt

3.8

Get married/civil

partnership

4.2

Buy a home

5.1

Start saving for reIrement

5.5

Have children

Gen Y paid/expect to pay off student loans much later in life – 6th place, aoer everything except having children

There have been no changes in expected order of life events since 2013

Average order of life events (Ranked between

1st and 7th)

START

FINANCIAL HOLDINGS AND ATTITUDES


21

40

63

83

76

7

31

41

71

70

1

4

12

29

59

44

35

74

89

76

9

23

36

58

68

Gen Z 2014 Gen Y 2014 High School Age Gen Z 2014 College Age Gen Z 2014 Post-College Age Gen Z 2014

Gen Z holds tradiIonal banking products, though to a lesser extent than Gen Y

Q110: Which of the following financial products, if any, do you have? MulIple responses allowed. Base: All (Gen Z 2014 N=1,001; Gen Y 2014 N=505; High School Age Gen Z n=385; College Age Gen Z n=326; Post-‐College Age Gen Z n=290)

Savings Account

Checking Account

Credit Card

Student Loan(s)

401(k) or 403(b)

(%)

Gen Z

Gen Z

Gen Y are significantly more likely than Gen Z to hold each banking product.

High School Age Gen Z are significantly less likely than College Age Gen Z and Post-‐College Age Gen Z to hold each banking product.

Post-‐college Age Gen Z are significantly more likely than College Age Gen Z to hold each banking product, except for savings accounts


Q190 (2013)/Q191 (2014): Which of the following best describes you? Base: All (Gen (2014 N=1,001 2013 N=1,000); High School Age Gen Z (n=385); College Age Gen Z (n=326); Post College Gen Z (n=290) Note: Percentages do not add up to 100 due to rounding.

High School Age are least likely to follow a budget: 24% vs 42% College Age, 44% Post-‐College Age 45% of Gen Y follow a budget carefully

As Gen Z grows older, budgeIng habits are improving

I have a budget and follow it carefully

I have a budget but don't really follow it that closely

I don’t earn enough money to have a budget

I am too young to have a budget

I don't know how to budget

36

27 25 26

22 25

12

18

4 4


(%)

Gen Z 2014 Gen Z 2013


Balance due on credit card increases with age, and is significantly higher than last year

Q140: Approximately, what was the total balance due on your credit card on your last statement, before you made any payment? Base: All who indicate they have a credit card (Gen Z 2014 n=361; Gen Z 2013 n=285; High School Age n=45; College Age n=135; Post College Age n=181; 2014 Gen Y n=376) * Very low base (n=45).

All Gen Z 2014 $749

All Gen Y 2014 $1,946

High School Age Gen Z*

$406

College Age Gen Z $559

Post College Age Gen Z $975

All Gen Z 2013 $485

High School

Average Balance Due on Last Statement

2013


Four out of 10 Gen Z pay their credit card off in full monthly, fewer than in 2013

Q130: How many months of the year do you pay your credit card off in full when you receive your statement? Base: All who indicate they have a credit card (Gen Z 2014 n=361; Gen Z 2013 n=287; Gen Y 2014 n=376).

(%) Paying off Credit Cards in Full Every Month

Gen Z 2014

43% Gen Y 2014

43%


Gen Z 2013

59% 2013


As in 2013, Gen Z feel that saving money is very important. Gen Y feel similarly

Q180: At the present stage of your life, how important or unimportant is saving money to you? Base: All (Gen Z (2014 N=1,001; 2013 N=1,000); Gen Y (N=505).

Gen Y 2014

56%

College Age and Post College Age Gen Z are more likely than High School Age to say Very important (60%, 58% vs 53%, respecIvely)

(%) Saying Saving Money is “Very Important”

Gen Z 2014

57% Gen Z 2013

50% 2013


The vast majority of Gen Z’s parents have explained the importance of saving to their children, on average at age 14

Q182: Have your parents discussed with you the importance of saving or invesIng for the future? Base: All (Gen Z N=1,001).

Q184: At what age do you recall having this conversaIon? Base: Those whose parents discussed the importance of saving and investment (Gen Z n=842; Gen Y n=354). Note: Percentages do not add up to 100 due to rounding.

Age of Discussion (%) Have your parents discussed with you the importance of saving or invesLng for the future?

YES 84%

10 or Younger 11 to 13 14 or 15 16 or Older

18 18

29

22 20 24

35 33

Gen Z 2014 Gen Y 2014


Average Age of discussion: Gen Z: 14 Gen Y: 13


Parents are #1 resource for financial knowledge, by far

Q181: Which of the following would you say has been the number one resource to help you learn about money and saving or invesIng? All (Gen Z 2014 N=1,001).

Gen Z 2014 51%

(%) Saying Parents are # 1 Resource

Other resources above 5% threshold: Teacher or courses in school/college: 10% Websites/blogs about money, saving or invesIng: 7% A financial advisor: 7%


Four out of 10 Gen Z have taken a class about money/saving or invesIng

Q188: Have you ever taken, or do you plan to take, a class about money, saving or invesIng, in either high school or college? Base: All (Gen Z N=1,001; Gen Y N=505).

I’ve taken a class about money, saving or invesIng

I plan to take a class about money, saving or invesIng

I’ve never taken a class about money, saving or invesIng

38% 35% 20% 10% 42% 55%

Yes Yes No

Gen Z 2014 Gen Y 2014


If given a $500 gio over 9 out of 10 Gen Z will save at least some of it

Q740: If you were given $500 today, would you spend it or save it? Q745: What would you spend the money on? Q746: What would you save the money for? MulIple responses allowed. Base: All Gen Z (N=1,001).

Others

Save it for the educaIon of my child/children/other

dependent

Save towards a big Icket item

Save it for reIrement

Save it for nothing in parIcular

Save it for college/university/ further

educaIon

7

12

18

21

36

37

Others

Use it to cover living necessiIes (rent,

uIliIes, food)

Give it to your parent(s)/guardian(s)/

other relaIves

Use it to pay bills/debt

Use it to treat myself (clothes, restaurant,

show, etc.)

3

11

27

27

38

Save it All 40%

Save Some/ Spend Some

52%

Spend it All 8%

(%) I would save the money for… I would spend the money on…

Gen Y are significantly less likely to save the money for college (10%) or treat themselves (18%) but are more likely to use it to pay bills/debt (39%)


Gen Z’s usage of mobile banking, budgeIng and invesIng apps is growing

Q370 (2013): Which, if any, of the following types of applicaIons do you currently use on your smartphone, phablet or tablet? Q193 (2014): Which, if any, of the following types of applicaIons do you currently use on your smartphone or tablet? Base: All who use a smartphone, phablet (2013) or tablet (Gen Z 2014 n=886; Gen Z 2013 n= 774; Gen Y 2014 n=463).

55

47 33

21 19 8 13 8

2

Gen Z 2014 Gen Z 2013 Gen Y 2014

A banking app that allows you to check your account balances

A budget/saving app that helps you keep track of your spending and/or saving

An invesIng app that allows you to track your 401k or other investment accounts

(%) Using Each Type of App on their Smartphone or Tablet


INVESTING IN THE STOCK MARKET


Most Gen Z know liyle or nothing about how to invest. A quarter (24%) know at least a ‘reasonable amount’

Q300: Which of the following statements best describes what you have heard about invesIng in the stock market and what you know about how to do it? Base: All (Gen Z N=1,001).

I don't know

I have never heard of invesIng in the stock market

I have heard of invesIng in the stock market, but don't know how to do it

I know a small amount about how to invest in the stock market

I know a reasonable amount about how to invest in the stock market

I know a great deal about how to invest in the stock market

8

5

35

28

16

8

There are no significant differences between Gen Z and Gen Y

(%)

24


Only 1 out of 5 Gen Z believe that the stock market is a good place for their long term investments

Q320: I am confident in the stock market as a good place for my long-‐term investments (Indicate to what extent do you agree or disagree with this statement) Base: All (Gen Z N=1,001).

Agree

20% Neutral

52% Disagree

28%


(7 to 10 on a 10pt scale) (4 to 6 on a 10pt scale) (0 to 3 on a 10pt scale)


One out of every 5 Gen Z are already invested in the stock market

Q330: Do you currently invest in the stock market? Q340: At what age did you start invesIng in the stock market on your own? Base: All (Gen Z N=1,001; Gen Y N=505).; All who currently invest (Gen Z: n=198; Gen Y: n=182).

YES 20%

YES 36%

Gen Z 2014 Gen Y 2014

College Age and Post College Age Gen Z are significantly more likely than High School Age Gen Z to be invested in the stock market (22%, 27% and 12%, respecIvely)

Average Age of first investment in the stock market: Gen Z: 18 Gen Y: 24


Lack of knowledge about invesIng is the top reason for not invesIng in the stock market

Q331: Which of the following statements are reasons why you do not currently invest in the stock market? Base: Those not invested in the stock market (Gen Z n=803; Gen Y n=323). MulIple responses allowed.

A family member or friend has lost money in the past by invesIng in the stock market

I am not interested in the stock market

I think invesIng in the stock market is too risky

I am too young to think about invesIng in the stock market

I don’t have any money available to invest in the stock market

I don’t know enough about invesIng in the stock market

3

7

15

23

5

45

50

1

6

21

27

33

42

45

Gen Z 2014 Gen Y 2014

I have lost money in the past by invesIng in the stock market

(%)



8

8

11

13

13

14

14

14

16

45

Parents are, by far, #1 resource for knowledge about the stock market

Q350: From whom or what did you first learn about invesIng in the stock market? Base: All who are invesIng in the stock market (Gen Z n=198). Top 10 resources shown. MulIple responses allowed.

Parents/guardians

A class at college/university

Money, saving or invesIng websites or blogs

Friend

Another relaIve (not parent/guardian or sibling)

Teacher

A class at high school

A financial advisor

A connecIon on social media who discusses money (excluding family, friends, teachers, financial advisors)

TV/radio shows

Significantly lower for Gen Y (34%)

Significantly lower for Gen Y (8%)

(%)


Four out of 10 Gen Z say they are open to risk when invesIng in the stock market

Q360: Regarding the investments you make in the stock market, how would you characterize your level of risk (using 1 to 10 scale where 1 means not at all open and 10 means very open)? Base: Those who invest in the stock market (Gen Z n=198).

Open to Risk

41% Neutral

43% Not Open to Risk

16%




Even if Gen Z could ask anyone in the world for advice, 1 out of 4 would turn to a family member

Q380: If you could ask anyone in the world for advice about money, saving or invesIng who would it be? Open-‐ended quesIon. Top 5 groups of people shown. Base: All (Gen Z N=1,001).

INCLUDING:

Bill Gates: 13%

Warren Buffet: 6%

Donald Trump: 4% Significantly higher for Gen Y: 14%

Significantly lower for Gen Y: 6%

3

Professor/Teacher

3

Friend

23

Family member (mother, father, aunt, cousin)

27

Millionaire/ Billionaire CEO:

4

Movie/TV/radio personality (eg. Oprah, Suze Orman,

David Ramsey)

(%)

Significantly lower for Gen Y: 12%


Only a quarter of Gen Z (24%) trust the major financial insItuIons and believe in their long-‐term stability

Q381: I trust the major financial insItuIons and believe in their long-‐term stability (To what extent do you agree or disagree with the following statement? Base: All (Gen Z N=1,001; Gen Y N=505).

Agree

24% Neutral

56% Disagree

20%



HIGHER EDUCATION


Q500: How important or unimportant do you feel it is to obtain a higher educaIon in order to be successful in the future? For Gen Y the quesIon excluded the words “in the future”. Base: All (Gen Z 2014 N=1,001; 2013 N=1,000). Note: Percentages do not add up to 100 due to rounding.

Gen Z 2014 Gen Z 2013

As in 2013, Gen Z see higher educaIon as the key to success

Very unimportant

8

20

Somewhat unimportant

4 6

Neither unimportant or important

8 7

Somewhat important

21 14

(%)

Very important

Gen Y less likely to see college as ‘very important’ (47%)

60 54


Gen Y more likely to see college as ‘somewhat important’ (31%)


Q510: How unlikely or likely are you to pursue an undergraduate college degree (i.e. B.A. or B.Sc.)? Base: All (Gen Z 2014 N=1,001). Note: Percentages do not add up to 100 due to rounding.

Likely to go, in, or have gone

72%

Neutral

17% Unlikely or won’t go

10%

Will Gen Z go to college? A large majority are likely to go, or already have gone

There are no significant changes from 2013


Q520: How unlikely or likely are you to pursue an advanced college degree (i.e. Master’s, Ph.D., Doctor, Lawyer, Chartered Accountant, Engineer, etc.)? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000). Note: Percentages do not add up to 100 due to rounding.

Gen Z 2014 Gen Z 2013

What about pursuing an advanced degree? Half of Gen Z are likely to pursue an advanced college degree – a drop from 6 out of 10 in 2013

Neutral

53

Likely will, in, or have gone

61

23

Unlikely or Won’t go

23

18 22


(%)


Most Gen Z expect scholarships and grants will help them through college. Half of Gen Y who ayended college were awarded a scholarship or grant

Q530: How are you, do you expect to or did you pay for college? Base: All likely to go or have gone to college (Gen Z 2014 n=833; Gen Y 2014 n=387; High School Age Gen Z 2014 n=295; College Age Gen Z 2014 n=276; Post-‐College Age Gen Z 2014 n=262). Chart does not show response of “Other” given by 2% of respondents. MulIple responses allowed.

With assistance from scholarships, fellowships or grants

22

42

37

52

54

24

43

40

41

59

24

39

48

33

65

18

41

27

48

50

24

41

42

42

60

Gen Z 2014 Gen Y 2014 High School Age Gen Z 2014 College Age Gen Z 20414 Post-‐College Age Gen Z 2014

With assistance from student loans

With assistance from parent(s) / guardian(s), grandparents

By myself through savings or while working in college

My parent(s) / guardian (s) or other relaIves have paid/will pay in full


(%)

Post-‐College

College/High School

Post-‐College

Significantly higher for Gen Z in 2014 (24%) than in 2013 (14%)

Significantly lower for Gen Z in 2014 (42%) than in 2013 (55%)


Gen Z are more posiIve about college than Gen Y

25

48

19

64

19

57

Gen Z 2014 Gen Z 2013 Gen Y 2014

51 My college/university

educaIon was worth every penny invested*

Going to college in general is worth the cost as it helps

secure employment

I considered/am considering/delayed/going to college due to

how expensive it is/was

Q540: To what extent do you agree or disagree with each of the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505); All Gen Y who went to college (n=344). *QuesIon only asked to Gen Y who had been to college

(%) Agree (7 to 10 on a 10 point scale)


2013 Gen Y

Gen Y


Choosing a college? Courses come first; sports faciliIes last

Q525: Which of the following will have, or did have, the most impact on your choice of college/university? Please rank the items from most important to least important. Base: All likely to go to college/have gone to college (Gen Z n=833).

3.6 4.1 4.1

4.2

7.3

The courses offered by the

college/ university

The tuiIon fees charged

The locaIon of the college/ university

The athleIcs/ sport faciliIes of the college/ university

The academic reputaIon of the college/ university

More important for Gen Y (3.9)

Average ranking (Rank 1st to 9th)

4.5

Scholarship opportuniIes at the college/ university

4.6

The success of the college's/ university's graduates in finding good employment

6.0

The raIo of teachers to students in classes

6.8

The clubs and acIviIes available

More important for Females than Males

(3.4 vs. 3.8)

More important for Males than Females

(7.0 vs. 7.8)


Half of college students with student loans have funds leo over aoer all college/university-‐related expenses are paid

Q532: Thinking about how you spend/spent the money from your student loan, do you/did you typically have any money from your loan aoer you have/had paid for tuiIon, books and other college/university-‐related expenses? Base: All in/gone to college who used student loans (Gen Z n=177; Gen Y n=169).

YES 56%

YES 55%

Gen Z 2014 Gen Y 2014


3

5

26

17

34

76

7

18

38

39

40

80

Gen Z 2014 Gen Y 2014

Leoover student loan funds are most ooen used to pay daily necessiIes.

Q533: Typically, what do you/did you do with any money you had leo over from your student loan(s) aoer you have/had paid for tuiIon, books and other college/university-‐related expenses? Base: All who are in/have gone to college and had money leo over from their loans(Gen Z n=97; Gen Y n=93). MulIple responses allowed.

I pay/paid daily necessiIes

I spend/spent it on entertainment/treaIng myself

I save/saved it for a rainy day

I save/saved it towards reimbursing my loan

I give/gave it to my parents/guardians /others for helping me

pay for my schooling

I invest/invested it in the stock market

(%)



Q535: How much student loan debt do you currently have, or do you esImate you have accumulated up to this point? Base: All who know how much student debt they have (Gen Z n=137; Gen Y n=146).

Student debt currently owed/accumulated:

Average Student Loan Debt

$27,000 $29,400

Gen Z 2014

Gen Y 2014


Gen Z who are likely to go to college want to go straight there. With limitless money, a minority would travel first

Q550: Which of the following best describes your plans aoer high school? Q551: And if money wasn’t a concern, which of the following would most like to do aoer high school? Base: All high school Gen Z likely to go to college (n=232).

Go directly to college/university

Work to get experience prior to going to college/university

Take a break, when you don’t work or travel, prior to going to college/

university

Travel to get real-‐life experience

(%) Afer High School:

24

9

8

58

6

5

12

77

I plan to… If money was no object I would…


Aoer college, Gen Z expects to find a job as soon as possible, though half would travel if money was no object

Q560: Which of the following best describes your plans aoer college/university? Q561: And if money wasn’t a concern, which of the following would you most like to do aoer college/university? Base: All Gen Z college students and high school students likely to go to college (n=427).

Find a job as soon as possible

Pursue another degree

Travel for an extended period of Ime

Other

(%) Afer College/University:

3

47

25

25

2

6

18

74

I plan to If money was no object I would…

MOVING OUT OF HOME AND WORKING LIFE


Q610: At what age did you, or do you expect to permanently move out from living with your parents/guardians excluding any temporary relocaIon for studying or other purposes? Base: All (Gen Z N=1,001; Gen Y N=505). Note: Percentages do not sum to 100 due to rounding.

Gen Z expects to move out at 21

(%) ExpecLng to Move or Have Moved by Age Shown

26

26

14

23

17

21

11

15

31

14

0 20 40 60 80 100%

18 or under 19 or 20 21 or 22 23 or 24 25 or over

Gen Z 2014

Gen Y 2014

AVERAGE AGE 21

AVERAGE AGE 23

49% did/or expect to move out by age 20

40% moved out by age 20

There are no significant changes from 2013

1/2 of Gen Z expect to move out, or have moved out by age 20



67

50

59

63

55

59

Gen Z 2014 Gen Z 2013 Gen Y 2014

Majority of Gen Z believe they could go back home if needed, but over half are confident they won’t need to

Q630: To what extent do you agree or disagree with the following statements? Base: All (Gen Z 2014 N=1,001; 2013 N=1,000; Gen Y N=505).

(%) Agree (7 to 10 on a 10pt scale)

In the future, I know that I can always move back with my

parents/guardians if I can't afford to live on my own

I am confident that in the future, I won't need to move back with my

parents/ guardians due to my financial situaIon


Gen Y

Gen Y


Q635: At what age would you consider it embarrassing to sIll be living with your parents? Base: All (Gen Z N=1,001; Gen Y N=505).

Gen Z would be embarrassed to sIll be living at home at 28 years old

28 On Average:

Gen Z 9%

Gen Y 17%

Years Old Is Too Old

40 Years Old or Over

For Gen Y the average age is 31. There are no significant changes from 2013



Q660: At what age did you get your first paying job either full-‐Ime or part-‐Ime? Please exclude doing paid chores for a family member Base: All currently working or who have worked in the past and who gave an age of first employment (Gen Z 2014 n= 725; Gen Y 2014 n=483). Note: Percentages do not sum to 100 due to rounding.

Gen Z starIng to work at a younger age than Gen Y

(%) Who Started Work by Age Shown

0 20 40 60 80 100%

Gen Z 2014

Gen Y 2014

AVERAGE AGE 17

AVERAGE AGE 18

There are no significant changes since 2013 in age started working

22

26

26

30

33

39

20

6

12 to 15 16 17 to 20

21 or older


3

5

6

12

35

39

3

13

7

15

28

34

Gen Z 2014 Gen Z 2013

Money to save and spend are the top reasons for wanIng to work

Q670: Which one of the following was the main reason why you first started working? Base: All Gen Z currently working or who have worked in the past (2014 n=749; 2013 n=681).

I wanted money to spend

I wanted money to save

I wanted the experience of working

My parents/guardians told me to

I needed money to contribute to help the family/household

None of the above

(%) of Gen Z working or have worked Almost half of Gen Y (46%) first started working to have spending money



6

13

4

19

34

7

6

10

24

24

Gen Z 2014 Gen Z 2013

Saving for educaIon is the main goal for Gen Z who are working to save

Q671: What is the number one thing that you are saving for? (2013)/ When you first started working, what was the number one thing you were saving for? Base: All Gen Z who started working in order to save and gave a saving goal (2014 n=212; 2013 n=236). Top 5 reasons shown.

EducaIon

Car

Computer/electronics

Home/house

The future/future expenses

(%) of Gen Z working in order to save. Top 5 reasons



37 37 17 8

Q675: Thinking about when you start, or did start, your career, which will be, or was, more important to you: feeling inspired by the work that you do* or salary? Base: All (Gen Z 2014 N=1,001). Note: Percentages do not sum to 100% due to rounding.

Feeling inspired by their work is important to Gen Z

0 20 40 60 80 100%

Gen Z 2014

Feeling inspired much/

somewhat more

important

Feeling inspired and salary equal importance

Feeling inspired much/ some-‐

what less important

Don't know

74% say feeling inspired by their work is more important or equal to salary

3/4 of Gen Z rate feeling inspired by their work as equally or more important than their salary



The majority of Gen Z want a job that allows them to make a posiIve contribuIon to society

Agree

59% Neutral

34% Disagree

7%

Q676: When it comes to choosing a job, it is important to me that I choose a role that allows me to make a posiIve contribuIon to society. To what extent do you agree or disagree. Base: All Gen Z (N=1,001).




If you could have any job in the world, what would it be…

Q679: If you could have any job in the world, what would it be? Top 10 jobs shown. Open-‐ended quesIon. Base: All (Gen Z N=1,001).

Significantly higher for Gen Z than Gen Y (4%)

Significantly higher for Gen Y (5%) than Gen Z

7

Computer Engineer/ Programmer/

Game designer/ animator

Placeholder

CEO/ business owner/ entrepreneur

Performer (musician, actor, actress, dancer)

Professor/ teacher

Engineer Psychologist/ therapist

Writer/author/ journalist

ArIst/ Designer

Athlete/ AthleIc trainer

or coach

5 5

4 4

3 3 3

2 2 Doctor (specialist,

GP, denIst)

(%) Top 10 jobs shown. Open-‐ended quesLon


Q680: Currently, which of the terms below best describes how you primarily earn money? If you fall in to both categories, please select the category that provides you with the greatest income. Base: All working (Gen Z n=545; Gen Y n=380).

Gen Z 2014 Gen Y 2014

If working, Gen Z and Gen Y are tradiIonally employed. Only 10% are self-‐employed/entrepreneurs

11 10

89 90

I am 'tradiIonally employed". I work for a company that I do not own, that pays me a

wage for the work I do

I am self-‐employed/a business owner/an entrepreneur. I work for myself and/or own a company or part of a company

(%) of those working


Q 680b: In your career, would you rather be tradiIonally employed, or self-‐employed/a business owner/ an entrepreneur? Base: All (Gen Z N=1,001; Gen Y N=505).

Gen Z are less likely than Gen Y to want to work for themselves

TradiIonally employed Self-‐employed/a business owner/an entrepreneur

42 36

64 58

(%) Who would rather be… Gen Z 2014 Gen Y 2014



Q 681: At each of the following ages, how much money do you expect to be, or were you, personally earning per year?. Average figure rounded to nearest thousand. Base: All excluding don’t know. Base sizes vary between 355 and 533 (Gen Z) and 226 and 322 (Gen Y).

Salary expectaIons for Gen Z have dropped from last year, and are now more in line with Gen Y’s expectaIons

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$32,000

$56,000

$73,000

$94,000

$95,000

$37,000

$65,000

$84,000

$104,000

$120,000

$29,000

$49,000

$72,000

$93,000

$105,000

First job out of college

30 years old

40 years old

50 years old

60 years old

Gen Z 2013 Gen Y 2014 Gen Z 2014 Average Actual/Expected Salary

RETIREMENT


56

44

32

43

12

14

Four out of 10 Gen Z don’t expect to be able to rely on social security when they reIre

0 20 40 60 80 100%

Gen Z 2014

Gen Y 2014

Agree (7 to10 on 10pt scale)

Neutral (4 to 6 on 10pt scale)

Disagree (0 to 3 on 10pt scale)

There is no significant change from 2013

Q700: I don't believe I will be able to count on social security or other government reIrement programs by the Ime I reIre (To what extent do you agree or disagree with the following statements?) Base: All (Gen Z 2014 N=1,001; Gen Y N=505).



A quarter of Gen Z (26%) feel that they are too young to start saving for reIrement


I am too young to start saving for reIrement

I expect to receive an inheritance from my parents/family

18

9

28

21

26

Gen Z 2014 Gen Z 2013 Gen Y 2014

n/a

(% Agree 7 to 10 on 10pt scale)

Gen Y Significantly higher for High School Age Gen Z (40%) than for College Age Gen Z (20%) and Post-‐College Age Gen Z (15%)


Q710: At what age do you think you should start saving for reIrement? Base: All Gen Z excluding “don’t know” (2014 n=853).

27 25

Years Old

Years Old

Gen Y and Post College Age Gen Z believe that saving for reIrement should start younger:

There is no significant change from 2013 (28 years old)

Gen Z believes they should start saving for reIrement at age 27


Q715: At what age do you expect to reIre? By reIre we mean receiving no income from either part-‐Ime or full-‐Ime employment and have no intenIon of working in the future. Base: All giving an age at which they expect to reIre, excluding don't know (Gen Z 2014 n=810; Gen Z 2013 n= 819; Gen Y 2014 n=411).

65 Years Old

64 Years Old

63 Years Old

62 Years Old

61 Years Old

60 Years Old

Gen Z 2014

Gen Z 2013

Gen Y 2014

Average Expected ReLrement Age

Gen Z and Gen Y are opImisIc regarding age of reIrement

Happy ReLrement


Both Gen Z and Gen Y expect to need to save $1MM by their reIrement age

Q720: And how much money do you think you'll need to have saved in order to reIre at the age you expect to? Base: All esImaIng an amount (Gen Z n=341; Gen Y n=231).

The majority, however, don’t know how much they’ll need to save (66% Gen Z, 54% Gen Y)

$970,000 $1,070,000

Average Amount Needed to Save

Gen Z 2014 Gen Y 2014


One out of 5 Gen Z have started saving for reIrement

Q711: At what age did you start saving for reIrement, if you have started? Base: All (Gen Z N=1,001; Gen Y N=505). All who have started saving for reIrement (Gen Z n=198; Gen Y n=292).

(%) Who have Started Saving for ReLrement Average Age (of those who have started)

20%

Gen Z 2014 Gen Y 2014

58% 18 Years Old

23 Years Old

Gen Y 2014 Gen Z 2014


Half (47%) of Gen Z believe that a savings account is the best way to prepare for reIrement


The best way to save for reIrement is to save money in a savings

account

33

20

25

33

18

14

11

44

25

18

17

47

Gen Z 2014 Gen Z 2013 Gen Y 2014

The best way to save for reIrement is to invest in the stock market

I plan to invest in the stock market by myself using an online pla�orm

I plan to have a financial advisor handle my investments for me

(%) Agree (7 to 10 on a 10 point scale)


Gen Y 2013

2013

Gen Y 2013

Gen Y


Q712: What percentage of your income do you currently contribute to your 401(k), 403(b) or other employer-‐sponsored reIrement account? Q713: At what age did you make your first contribuIon to your 401(k), 403(b) or other employer-‐sponsored reIrement account? Base: All with a 401(k), 403(b) or other employer-‐sponsored reIrement account (Gen Z n=89; Gen Y n=224).

If saving into a 401(k) or 403(b), Gen Z are contribuIng a higher proporIon of their salary than are Gen Y

(%) of Income Contributed to 401(k)/403(b) Average Age First Contributed


16

12

Gen Z 2014 Gen Y 2014

19

24

APPENDIX: STUDY SAMPLE CHARACTERISTICS


5

17

25 23

11

19

5

17

25 23

11

19

5

16

25 22

12

20

0

5

10

15

20

25

30

New England Mid-‐AtlanIc South Midwest Southwest West

Region

27

62

10 14

78

8

71

9 20

0

20

40

60

80

100

Employed Students Unemployed

Employment Status

13

34

53

23

34

44

0

10

20

30

40

50

60

14 to 16 years old 17 to 19 years old 20 to 24 years old

Gen Z Age Groups

50

6

43

2

58

3

34

4

18 11

68

2 0

10 20 30 40 50 60 70 80

High school or less

Technical degree

University degree or more

Prefer not to answer

EducaIon Levels

Base: All Gen Z (2014 N=1,001; 2013 N=1,000); All Gen Y (2014 N=505).

(%)

Study sample characterisIcs are:

Gen Z 2014 Gen Y 2014 Gen Z 2014

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