Gen Y and Financial Services

In today's Marketing Daily from MediaPost, there's an interesting article on Generation Y and their need for financial guidance. According to "Gen Y Is Going To Need Financial Guidance More Than Most," people born between 1977 and 1994 make up only about 5 percent of financial advisors' client base. Millennials (generally speaking) have more student debt than previous generations, continue to rack up credit card debt and do not put money away for retirement or other savings. Less than a third who are able to participate in a tax-deferred retirement savings plan are doing so, even though they are the generation most in need of financial planning.

It wasn't until I was 30 (and engaged) when I sought professional assistance in my personal financial planning. As a 20-something in the 90s, I was always conscious of the need to save. I opened up IRAs, 401-Ks and the like. But it wasn't easy and I know I could have done more. Aside from helpful parental advice and my Rookie's Guide to Money Management book, I was on my own. And I imagine college-educated people just starting out in their careers today are in similar positions: they'll just figure it out as they go along.

I don't remember there being any financial services counseling at my undergraduate career services center while I was a student. In hindsight, I'm sure I would have benefitted from even basic advice. Does your school offer counseling of this nature? Managing money is of course a vital part of career planning, but I have a feeling this "real world" counseling may inadvertently fall by the wayside while the heat is on for students to graduate, find jobs and get started with the next chapter of their lives.

Photo by Rob Lee