Young Adults Study The Pandemic's Perfect Storm - In Partnership with Georgetown University, Business For Impact - Women's Institute for a ...
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Young Adults Study
The Pandemic’s Perfect Storm
In Partnership with Georgetown University, Business For ImpactDisclosures
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© 2020 Bank of America Corporation. All rights reserved. | MAP3335465 | PRES-11-20-0404 | 12/2020
2Findings
Even as they age Over half of young
into parenthood, adults get financial
Most young adults
relatively few help from parents, A plurality of
give their current
millennials have with significant young adults are
employer good or
retirement numbers of the re-examining the
excellent marks on
accounts, and oldest millennials way they work
workplace diversity
more have credit still getting
card debt assistance
Millennials
taking day-to-
Yet, they see day help from Prioritizing a Consistent
themselves as parents with flexible across race
savers implications workplace and gender
for wealth
transfer
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials,
Georgetown University McDonough School of Business, 2020. Business for Impact —Young Adult COVID-19 Survey 3Financial well-being
Perceived financial security translates to financial well-being scores, with millennials’
overall financial well-being lagging behind all adults.
Millennials
3% 4% 11% 43% 28% 7% 3% 1%
61%Millennials say they are “savers”
While majorities in both generations identify as “savers,” millennials are more likely to
describe themselves as “savers” than their younger counterparts in Gen Z.
Outlook on Spending and Saving Spender-to-Saver
Self-assessment
Gen Z 17% 46% 14% 18% 5% (0-10 scale)
Gen Z Millennials
Millennial 23% 49% 12% 14% 3% 6.1 6.7
Saver Somewhat saver In the middle Somewhat spender Spender
Saver Spender
Gen Z 63% 23%
Millennial 71% 17%
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials, Business for Impact —
Georgetown University McDonough School of Business, 2020. Young Adult COVID-19 Survey 5But they lack retirement accounts
Double incomes make the difference—married millennials are significantly more likely
to have all types of assets; singles and parents are less so.
Millennials
Single Married Parents Male Female
(n=527) (n=243) (n=852) (n=830) (n=834) FT working women
A savings, without children are more
money market 56% 57% 64% 55% 47% 53%
or checking likely to have financial
account
31% assets than women with
Retirement
children; and more
31% 27% 41% 31% 24% 26%
account such as likely than men.
401(k), IRA, etc. 7%
Brokerage 16% 15% 21% 16% 16% 11%
account, mutual
funds, stocks 5%
Real estate 5% 3% 6% 6% 6% 3%
investments 3% Millennial (n=1679) Gen Z (n=601)
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials, Business for Impact —
Georgetown University McDonough School of Business, 2020. Young Adult COVID-19 Survey 6Student loans viewed as significantly affecting the financial future
Gen Z student loan holders are more confident in their ability to pay off this debt without
significantly affecting their financial future.
% of Gen Z with Confidence in Ability to % of Millennials with Confidence in Ability to
Student Loan Debt Repay Student Loans Student Loan Debt Repay Student Loans
(n=91) (n=383)
23%
Confident can repay without Confident can repay without
much effect on my financial much effect on my financial
15% future 41% future 28%
Will be able to repay, but Will be able to repay, but
with significant effect with significant effect
on my financial future 35% on my financial future 34%
I will probably not be able to I will probably not be able to
pay my student loan debt 24% pay my student loan debt 38%
(n=601) (n=1679)
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials,
Georgetown University McDonough School of Business, 2020. Business for Impact —Young Adult COVID-19 Survey 7Over half of younger adults receive financial help from parents
This extends to a plurality of the oldest millennials still getting help, including a quarter
who get help with day-to-day expenses
Gen Z Millennials
Never received Receive financial 18-23 24-29 30-34 35-39
financial help help from parent(s) (n=519) (n=536) (n=463) (n=452)
from parents Receive help from parents (net) 57% 76% 58% 46% 44%
19%
Day-to-day expenses (e.g., cell phone,
33% 49% 32% 24% 24%
groceries, monthly subsidy)
Rent/housing 27% 41% 26% 19% 18%
Financial
Debt/Loan payments 13% 17% 12% 11% 10%
Support from
57% Down payment for big purchase
Parents Parents (house, car, etc.)
12% 16% 9% 11% 12%
helped 25%
in the past, Other 3% 4% 4% 2% 3%
not anymore
None – parents helped financially in
25% 14% 25% 30% 33%
the past, but not anymore
among those with living parent(s) None – you have never received
(n=1970) 19% 10% 18% 25% 23%
financial help from your parents
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials,
Georgetown University McDonough School of Business, 2020. Business for Impact —Young Adult COVID-19 Survey 8Comfort with virtual professional interactions has increased
Millennials have become more comfortable with virtual interactions in recent
months—roughly six in 10 are comfortable with virtual work meetings, telemedicine,
counseling and meeting with a financial advisor.
Gen Z
is least sold on virtual
6% Gen Z Millennial
interactions
18-23 24-29 30-34 35-39
18-23 24-29 30-34 35-39
(n=601) (n=615) (n=532) (n=532)
48% (n=601) (n=615) (n=532) (n=532)
More comfortable 42% 48% 52% 52% Work meetings 55% 58% 67% 66%
46% Job interview 51% 56% 63% 66%
About the same as before 49% 47% 43% 44%
Medical doctor
50% 55% 61% 70%
9% 5% 5% 4% visit/telemed.
Less comfortable
Therapist/
48% 51% 55% 61%
counseling
Meeting with
financial advisor 43% 53% 59% 58%
(excl. students, n=2042)
College interview 55% 50% n/a n/a
(students only, n=238)
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials, Business for Impact —
Georgetown University McDonough School of Business, 2020. Young Adult COVID-19 Survey 9Workplace benefits & flexibility
With the COVID-19 pandemic, employee benefits and workplace perks like
work-from-home and flexibility are a higher priority.
Older employees feel even more strongly about these benefits and flexibility.
As it relates to your career and the COVID-19 pandemic, 18-23 24-29 30-34 35-39 Six in 10 say
rate how each statement describes you (n=139) (n=266) (n=305) (n=308)
employee benefits
Employee benefits are more are more important
important to me than ever (e.g., 29% 33% 62% 53% 60% 64% 68%
health care, retirement plan, PTO) than ever.
I want my employer to support
employees working from home even 29% 28% 57% 40% 56% 61% 63% Parents value
after my state re-opens
flexibility and work-from-
Will prioritize flexibility in my next home options more than
job (e.g., time, working hours, 24% 28% 52% 45% 51% 54% 55% non-parents.
comfort, etc.)
Describes perfectly Describes very well
No differences by gender, race.
Full-time employed (n=1018) Hispanic slightly less likely to find
employee benefits more important than
ever (55%).
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials, Business for Impact —
Georgetown University McDonough School of Business, 2020. Young Adult COVID-19 Survey 10Commitment to work & community
Roughly half of young adults feel a stronger commitment to their current job,
work and career since the pandemic.
As it relates to your career and the COVID-19 pandemic, 18-23 24-29 30-34 35-39
rate how each statement describes you (n=139) (n=266) (n=305) (n=308)
Since the pandemic, I am more committed to 36% 42% 50% 56%
23% 25% 48%
staying with my job/advancing in the company
Experience of the pandemic made my work and
career more important to me 19% 29% 48% 38% 42% 50% 55%
It’s important that my employer provide
opportunities to volunteer in the community
16% 23% 39% 32% 35% 39% 44%
Now interested in a way to donate to causes I
support directly from my paycheck
16% 19% 36% 31% 30% 34% 44%
Describes perfectly Describes very well Full-time employed (n=1018)
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials,
Georgetown University McDonough School of Business, 2020. Business for Impact —Young Adult COVID-19 Survey 11Workplace diversity & inclusion (D&I)
Up to two-thirds of young adults surveyed rate their employer as excellent or good on
diversity in the workplace, and policies and training to advance diversity and inclusion.
18-23 24-29 30-34 35-39
(n=139) (n=266) (n=305) (n=308)
Older millennials,
Employees reflect a range of age, 64% 69% 74%
gender, race, disability, etc.
32% 35% 67% 53% urban dwellers and
higher income ($100K+)
Engages employees in households give employers
diversity and inclusion 30% 31% 61% 55% 53% 61% 70% more positive marks
conversation and training
for D&I.
Develops and reviews policies and
procedures that will promote 28% 36% 64% 60% 56% 68% 69%
workplace diversity and inclusion Lower income
Senior leadership positions reflect
workers score employers an
a range of age, gender, race, 27% 33% 36% 53% 52% 63% 67% average of 11 points lower.
disability, etc.
Excellent Good Full-time employed (n=1018)
arrows indicate significantly higher/lower at the 95% confidence level
Source: The Pandemic's Perfect Storm, Examining COVID-19 impact on Gen Z and millennials, Business for Impact —
Georgetown University McDonough School of Business, 2020. Young Adult COVID-19 Survey 12Thank you
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