Despite the less-than-flattering stereotypes, millennials have a lot going for them: they are the most educated and skilled generation in Canadian history. That should set them up for career and life success.
But there’s one area where they don’t excel, and that may hold them back. They lack sufficient financial knowledge.
According to a PwC study, 24% of millennials have basic financial literacy, and only 8% have high financial literacy.
Why does it matter? According to a BMO report on millennials and financial literacy, this lack of financial savvy means they risk missing opportunities to make the most of the money they have or will earn.
For instance, they may choose the wrong savings vehicles for their goals, miss out on tax-savings strategies or not understand the importance of diversification in their overall portfolio.
But they have made a start. The BMO report notes that 72% of millennials are saving for a financial goal. And before the rest of us get too smug, it’s worth noting that last year, the Financial Consumer Agency of Canada (FCAC) found that many Canadians still don’t understand some basic financial facts.
Seems the need for sound financial advice is as strong as ever.
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
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