Millennials Don’t Want To Invest, But FCNB Wants To Help Change That
Generally speaking, millennials haven’t had it that easy when it comes to financial stability.
They were unfortunate enough to come of age during a recession and many are still struggling to get a well-paying job in the field that they went $39,000 in debt to get a degree in.
It would be fair to say that things like saving to buy a home or even retirement are often the last things on their list of priorities. But the Financial and Consumer Services Commission of New Brunswick (FCNB) wants to help millennials get started.
October is Investor Education Month and this year FCNB is focusing on helping New Brunswickers aged 23 to 38 understand why now is a good time to start their investing journey.
“Millenials are a group that time is definitely on their side and that’s the message centering on this time around,” says Lisa Leger, education coordinator with FCNB. “Letting them know that even if it’s for a down payment on a house, vacation, purchases for their hobbies or even planning for their retirement, millennials can take advantage of compound interest by contributing small amounts towards their financial goals.”
Studies have shown the millennials are reluctant to invest for a variety of reasons including high debt load and lower-incomes, making them more cautious of where they put their money.
“A lot of the times they prioritize regular savings over investing. They just have more of a cautious attitude it seems,” says Leger. “A lot of these factors are what usually make millennials more hesitant to invest.”
Yet millennials have an advantage when it comes to investing. Since they are younger, investing early can have a big payoff, even if it’s a smaller amount like $10 a pay.
“That’s really the biggest plus of investing early or investing when they’re younger, because they can take advantage of those compounding interest rates and the longer they’re saving, the better off they’ll be,” says Leger. “It’s going to help with those long-term goals like vacations, home purchases, retirements, those types of things.”
There a lot of ways one can invest, mutual funds, GIC’s, stock options, just to name a few. Then there is finding the right financial advisor. To help young people sort through the information, this month FCNB will be promoting their various online tools such as Investment Planning Workbook, Be An Informed Investor guide and Five Steps to Choosing an Advisor checklist. It will also be hosting an event this month at St. Thomas University in Fredericton for students on Oct 24.
“Our main message is to let millennials know that time is on their side and the sooner you can start investing, even small amounts, the better,” says Leger.
With files from Brad Perry, news director of Huddle content partner CHSJ/Country 94.