Millennials have made their mark on mainstream culture, but what about when it comes to personal finance? See what effects an increase in higher education, waiting to start a family and technology have all had on America’s largest generation.

An overview of the generation causing all the buzz
Millennials outnumber Baby Boomers by 15 million
Generation Z: 23 million
Millennials: 92 million
Gen X: 61 million
Baby Boomers: 77 million

They like pocket-sized banking
– 80% of millennials access their financial institutions on their phones

On average, American Millennials make $20,000 less than the U.S. Average ($30,000 v. $50,000)

The Millennial Credit Portfolio
What kinds of credit are Millennials most likely to take out?

Credit Cards
– 27% of Millennials have opened credit card accounts
Student loans
– 24% of Millennials have taken out student loans
Car Loans
– 14% of Millennials have taken out auto loans
Mortgage
– 3% of Millennials have taken out a mortgage

Millennial Budgets
Where Millennial’s cash flows

More Health, Wealth and Happiness
Organic food
Craft beer
Tattoos
Health/Wellness
Sharing services (e.g. Uber)

Less Playing House
Homes
Cars
Wedding
Children

Where Millennials stack up against the U.S. Credit Score
Average U.S. Credit Score: 695
Age: 19 to 34 had a 625 average credit score
Average debt (including mortgages) $52,120
Bankcard balance overage $3,403
Credit utilization 43%

Why Millennials scores aren’t as high as previous generations
– Spending after consolidating debt: 23% of Millennials would consolidate their debt to spend more money
– Loan use: 29% of Millennials would take out a personal loan for a vacation or wedding
– Lack of credit awareness: only 48% of Millennials are aware of their credit score
– Underemployment:20% of degree-holding Millennials earn less than $25,000
– Lack of investment: In 2014, only 38.6% of millennials held equity in stock

The Millennial Credit First Aid Kit
– Diversify credit
– Reduce credit utilization below 30% of total credit available
– Understand and check credit score
– Avoid collections and pay bills on time
– Keep low credit card balances
– Apply for open credit only when needed

Sources:
[1] https://www.fico.com/en/node/8140?file=8406 (Options and Opportunities: Foraging Lasting Banking Relationships with Millennials)
[2] https://www.bankrate.com/finance/credit-cards/more-Millennials-say-no-to-credit-cards-1.aspx (More Millennials say ‘no’ to credit cards)
[3] https://www.creditkarma.com/trends/age (Credit Trends)
[4] https://www.cnbc.com/2015/09/02/know-about-credit-cards.html (What Millennials don’t know about credit cards)
[5]https://www.experian.com/assets/consumer-education-content/images/credit-then-and-now-infographic-f.pdf?WT.srch=PR_CIS_Millennials_20150730_pressrelease_CreditThenNow (Millennials vs. Gen X)
[6] https://www.cutimes.com/2015/07/30/Millennials-build-credit-with-auto-loans-experian (Millennials Build Credit with Auto Loans: Experian)
[7] https://www.goldmansachs.com/our-thinking/pages/Millennials/index.html (Millennials: Coming of Age)
[8] https://cdn2.hubspot.net/hub/55706/file-600316645-pdf/Flyers/The_Millennial_Shift_Study_Flyer.pdf (The Millennial Shift: Financial Services and the Digital Generation)
[9] https://www.slate.com/blogs/moneybox/2014/12/08/broke_millennials_the_decline_of_young_adult_incomes_since_the_recession.html (How Broke Are Millennials? This Broke.)
[10] https://thefinancialbrand.com/49848/millennial-geny-digital-payments-banking-communication/ (8 Astonishing Facts Bankers Should Know About Millennials)
[11] https://time.com/money/3979425/millennials-consumers-boomers-gen-x/ (10 Things Millennials Buy Far More Often Than Everyone Else)
[12] https://time.com/money/2820241/10-things-millennials-wont-shell-out-for/ (10 Things Millennials Won’t Spend Money on)
[13] https://www.thefiscaltimes.com/2015/10/06/Here-s-Why-Millennials-Have-Lowest-Credit-Scores (Here’s Why Millennials have the Lowest Credit Score)
[14] https://assets.nerdwallet.com/blog/wp-content/uploads/2015/09/NerdWallet-Consumer-Credit-Card-Report-2015-Data-Pack-vFinal.pdf (2015 NerdWallet Consumer Credit Card Report)
[15] https://www.forbes.com/sites/ashleystahl/2015/05/11/the-5-4-unemployment-rate-means-nothing-for-millennials/ (The 5.4% Unemployment Rate Means Nothing For Millennials)
[16] https://www.prnewswire.com/news-releases/the-great-credit-divide-millennials-struggle-to-manage-their-credit-while-boomers-express-confidence-300154410.html (The Great Credit Divide: Millennials Struggle To Manage Their Credit While Boomers Express Confidence)