麻豆淫院

Generations are already seen as unique in terms of values and beliefs. These differences may stretch into the realm of finance, according to a new study from the University of Georgia.

Financial well-being reflects a person's ability to hold out against financial troubles and achieve their goals. If financial well-being is low, there can be negative impacts on a person's mental health.

The researchers looked at data from the 2016 Consumer Financial Protection Bureau's National Financial Well-Being Survey. It focused on the financial knowledge, skills and behaviors of three generations: baby boomers, Generation X and millennials.

"We focused on the differences in the relationships between financial knowledge, skill, and behavior and financial well-being of these three generations. This is to give us a broader understanding of how people learn things and use their knowledge and skills differently by generation," said Lu Fan, lead author and associate professor for UGA's College of Family and Consumer Sciences. "They have different life goals and priorities at different ages."

Based on responses to the survey, millennials showed lower levels of financial well-being and knowledge while boomers had the highest. Financial knowledge and money management skills also tended to increase with age.

Insights from this study could help in developing programs to improve financial well-being across generations.

Lived experience may play a role in financial well-being

The researchers looked at a variety of factors to assess financial well-being, including personal financial knowledge. This includes both subjective knowledge, what someone believes they know, and objective knowledge, what they actually know.

Financial skills, day-to-day money management, commitment to financial goals and saving regularly are also key. Even so, millennials often showed less financial knowledge and money management skills, which may be damaging their overall financial well-being.

"Millennials reported lower knowledge mostly because they're younger, and they're still learning," Fan said. "Boomers reported higher financial knowledge, probably because they've learned through their life and through their experiences."

These experiences can vary; not only could boomers be learning from their daily lives, but also major national or world events that can shape the values of an entire generation.

Programs could help improve financial well-being for each generation

Even with this overlap, however, Fan said that certain factors are more impactful to a generation's financial well-being than others. Millennials could benefit more from increasing their objective financial knowledge compared to boomers, while boomers could improve financial well-being from better money management behavior and goal commitment.

Being able to set and follow through with long-term financial goals was also tied to increased financial well-being. Sticking to goals was important for all generations, but especially crucial for Gen Xers, as they need to plan their spending leading up to and during retirement.

Because of these varying relationships, the study found it may be best for financial advisors and educators to tailor their programs for different generations.

"Millennials are faced with various midlife financial choices and long-term planning decisions, and therefore need to improve their financial knowledge, skills and behaviors in order to reach better financial well-being," Fan said. "Most boomers are now in retirement, so it's important to understand their financial needs and management behaviors during this life stage."