2017 Bank of the West Millennial Study · The Millennial Mindset: ... 2017 Bank of the West Millennial Study: Financing the American Dream. 26 85% of Millennials are confident they

2017 Bank of the West Millennial StudyResults

4/26/2017

Table of Contents

• Executive Summary 4

• Core Findings 5

– The American Dream: A Growing Checklist 6

– The Millennial Mindset

• Housing 12

• Career 18

• Family Life 22

– Financing the American Dream 25

• Additional Data

– Women 33

– Urban vs. Rural 37

– California 44

– Methodology 49

2

UNDER EMBARGO UNTIL 12:01am ET on 4/26/17

2017 Bank of the West Millennial Study:

Executive Summary

Executive Summary

• Millennials like the idea of being flexible and don’t want to feel tied down. However, in practice, they are quite stable.

• More than six in 10 Millennials believe that the American Dream is still attainable today.

• Like previous generations, Millennials want the classic American Dream of owning a home, paying off debt, and someday retiring—as well as new ingredients reflecting their desire to roam by traveling the world.

• They imagine themselves untethered: living abroad, moving when they want, and switching careers. And yet, many have chosen to buy homes, stick with their current employers, and build fulfilling family lives.

• The vast majority are confident they will attain their American Dreams.

• And yet, only half have plans in place to finance them.

• Without a financial plan Millennials are floundering—with their savings priorities misaligned with their long-term goals and by overwhelmingly saving in cash instruments, instead of investing.

5


Core Findings

The American Dream:

A Growing Checklist

Six in 10 Millennials believe in the American Dream

7

5%

5%

9%

24%

56%

Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q14. Which best describes how you feel about the American Dream?

Already attained/Still attainable

The American Dream is still attainable

I once believed in the American Dream, but no longer do

I never believed in the American Dream

The American Dream was never/will never be attainable

I have already attained the American Dream

Which best describes how you feel about The American Dream

61%

Like others, Millennials value being happy, home ownership, being debt-free, and retiring comfortably as ingredients in their American Dream

8

Top Ingredients in American Dream

4%

45%

44%

46%

32%

34%

67%

66%

69%

80%

5%

33%

38%

38%

36%

37%

57%

56%

62%

70%

3%

43%

43%

43%

47%

46%

51%

55%

60%

70%

4%

42%

43%

43%

44%

44%

54%

56%

61%

71%

I don't have an AmericanDream

Getting married

Getting a good education

Having children

Pursuing my passion

Building a satisfying career

Retiring comfortably

Being debt-free

Owning a home

Being happy

All

Millennials

Gen X

Baby Boomers

Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q15. Please select the most important ingredients from the following list that describe your American Dream.

30%

34%

32%

28%

37%

36%

41%

46%

47%

39%

44%

44%

Traveling the world


Pursuing my passion

All Millennials Gen X Baby Boomers

Millennials also dream beyond what their parents had—valuing pursuing their passions, professional success, and traveling the world

9

American Dream Ingredients


All Ingredients of Millennials’ American Dream

10

3%

24%

25%

28%

28%

40%

41%

41%

42%

42%

42%

43%

43%

43%

46%

47%

51%

55%

60%

70%

I don't have an American Dream

Beting better off than the previous generation

Working for myself/owning a business

Owing pet/s

Earning a big paycheck

Making a difference

Falling in love

Traveling the world

Making it on my own

Owning a car

Building wealth

Getting married

Having children



Pursuing my passion


Being debt-free

Owning a home

Being happy

Millennials


In fact, in order to make these dreams a reality, Millennials are willing to work a second job to pursue their interests

11

57%

72%

74%

Would work a second job to pursue my interests


Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q3. To what extent do you agree or disagree with the following statements?

Agreement with Statements(% Completely/Somewhat Agree))

76%

The Millennial Mindset:

Housing

85% of Millennials say it’s important to have the flexibility to move when they want

13Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q6. How important is it to you to have the flexibility to move when you want to?

C

42%

44%

39%

30%

42%

41%

43%

48%

14%

13%

17%

16%

3%

2%

2%

7%

All

Millennials

Generation X

Baby Boomers

Very Important Somewhat Important Not Too Important Not Important At All

Importance of Flexibility to MoveVery/Somewhat

Important

82%

77%

85%

Millennials would like to live abroad at some point in their lives

14Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q8. Would you like to live in another country?

32%

45%67%

61%

Yes, I would live in another country

Total

Millennials

Generation X

Baby Boomers

C

32%

68%

19%

80%

31%

69%

31%

69%

For a long time

For a short time

I would live in another country for…(Among those who would live in another country)

All Millennials Generation X Baby Boomers

67%

Millennials want to put down roots in one community, rather than live and work in multiple geographies

1515

68%

73%

81%

32%

27%

19%

Base: Millennials=806; Generation X=103; Baby Boomers=101Q26. Imagine a world where only one item in each pair is possible. Would you rather..

Put down roots in one community

Live and work in multiple geographies

Baby BoomersGeneration XMillennials

C

43% of Millennials own their homes, making relocation challenging

16Base: Millennials=806; Generation X=103; Baby Boomers=101Q11. Where do you currently live?Q12. What reasons, if any, would/did motivate you to buy your own home?

41%

43%

15%

1%

Rent Own Stay with parents/family Stay with friends

Where Millennials Live

27% of younger Millennials (ages 21-27) own homes vs. 56% of older Millennials (ages 28-34)

Three in four renters say they could decideto buy down the line

“Tax purposes, the American dream, to put

down roots for more than a year lease.”

“If I was settling down with a

significant other and starting a family, I

would certainly look into buying my

home.”

“I'd want to have a down payment and a good interest rate

on a mortgage. I probably wouldn't buy a house until I

have kids.”

“Children and wanting to make a central place from

which we operate as a family. I also would like to have assets in my name

and a house is a way to do that.”

17Base: Total=135; Millennials=110; Generation X=16; Baby Boomers=9Q13. What's the main reason you don't want to own your own home?

The main reason Millennials give for not wanting to own a house is that it’s too expensive

Millennials

Main Reasons Not to Own a HousePlease note small sample size

34%

14% 13%

18% 19%

3%

It's too expensive I enjoy the financialflexibility of renting

I don't want to betied down to one

location

I don't want to gointo debt

It's too muchresponsibility

It's a badinvestment


Career

Millennials say they need to switch employers to be paid what they’re worth

19

19%

34%

48%

43%

To be paid what I feel I'm worth and advance in my career, Ihave to switch employers every few years



Career Advancement(% Completely/Somewhat Agree)

Despite this, two-thirds of Millennials are happy working for their current company and plan to stay put

20Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q3. To what extent do you agree or disagree with the following statements?

Job Satisfaction(% Completely/Somewhat Agree)

65%

60%

65%

64%

I am satisfied with my current employer and plan tostay with my company


And most Millennials wouldn’t quit their job or move to a new city without another job offer

21

87%

88%

68%

80%

62%

79%

65%

80%

I would move to a new city without a job lined up

I wouldn't quit a job without another lined up



Mobility and Employment

(% Completely/Somewhat Agree)

(% Completely/Somewhat Disagree)


Family Life

If forced to choose, Millennials put family life first and would prefer to live close to home

23

78%

80%

22%

20%

Base: Total n= 1,010Q26. Imagine a world where only one item in each pair is possible. Would you rather...

Have a rich family life

Move closer to family

Have a rich professional life

Move away from family

Imagine a world where only one item in each pair is possible. Would you rather…

With this tension between their attitudes and actions, nearly two in three Millennials feel stuck in the life they have

24

23% 41% 24% 13%

Completely Agree Somewhat agree Somewhat disagree Completely disagree

Agreement with “Sometimes I feel stuck in the life that I have”


Somewhat/completely agree: 64%


Financing the American Dream

26

85% of Millennials are confident they will attain their American Dream, but only half have a financial plan in place

Confidence in Attaining Their American Dream

Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q20. How confident are you that you will attain your American Dream?

52%

44%

49%49%

All

Millennials

Generation X

Baby Boomers

Have a Plan to Finance Their American Dream

49%

22%

32%

31%

12%

3%

Completely confident

Very confident

Somewhat confident

Not very confident

Not at all confident

85%

All generations overwhelmingly feel that opportunity—not innate ability—is the key to reaching their goals

27Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q18. Overall, which of the following do you think is the key to achieving the American Dream?

80%

20%

Opportunity Innate Ability

Key to the American Dream

42%

19%

18%

14%

6%

Hard work

Money

Network/connections

Education

Luck

Opportunity Variables(Among those who chose opportunity)

41%

26%

16%

7%

10%

Confidence

Intelligence

Fearlessness

Charisma

Scrappiness

Innate Ability Variables(Among those who chose innate ability)

Millennials believe they have more opportunity to be successful than their parents

28

26% 26% 24% 9%

Completely agree Somewhat agree Somewhat disagree Completely Disagree


Agreement with “I have more opportunity than my parents had to be successful”(% Completely/Somewhat Agree)

Somewhat/completely agree: 67%

More Millennials are saving to travel than for a home or retirement, two core elements of their American Dream

29

What They Are Currently Saving For

Travel

Retirement

Emergency fund

Build wealth

Support children

Buy a home

Education

Large purchase

Start a business

Switch career

I am not saving

Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q21. What financial goals are you currently saving or investing for?

Baby BoomersGeneration XMillennialsAll

16%

0%

1%

11%

6%

4%

4%

28%

34%

61%

30%

16%

5%

7%

16%

20%

16%

32%

34%

43%

53%

33%

9%

12%

16%

23%

30%

38%

37%

36%

42%

37%

46%

10%

10%

13%

21%

27%

32%

33%

35%

41%

41%

43%

9%

12%

13%

34%

6%

19%

8%

5%

11%

10%

27%

11%

25%

12%

5%

12%

15%

11%

18%

19%

21%

5%

12%

14%

15%

16%

19%

19%

Estate planning

Debt refinancing

A regular financial check-up

Retirement planning

Free financial education

Access to capital

Budgeting help

All

Millennials

Generation X

Baby Boomers

30

Financial Support Needed To Achieve Their American Dream

Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q25. What financial support would most help you reach your American Dream?

Millennials say budgeting help, access to capital, and financial education will help them achieve their American Dream

21%

19%

18%

Just a quarter of Millennials are investing, most saving in cash or bank accounts

31Base: Those saving Total=907; Millennials=735; Generation X=87; Baby Boomers=85Q23. How are you primarily saving?

How Americans Save

Millennials Investing: 24%

60%

18%

10%

12%

64%

17%

7%

12%

51%

21%

18%

10%

39%

26%

27%

8%

Checking/savings

Investing on my own

Investing with the help of an advisor/robo-advisor

Cash

All

Millennials

Gen X

Baby Boomers


The Female Perspective

33Base: Total: 1010; Female: 573; Male: 437Q15: Please select the most important ingredients from the following list that describe your American Dream.

Women are more likely to choose more “ingredients” to create their American Dream

33

Ingredients of the American Dream

5%

24%

26%

22%

29%

33%

36%

31%

37%

38%

41%

33%

32%

32%

40%

36%

44%

48%

54%

63%

3%

26%

23%

32%

25%

45%

44%

44%

46%

45%

41%

50%

51%

51%

46%

50%

61%

62%

67%

77%




Owing pet/s


Making a difference

Falling in love

Traveling the world

Making it on my own

Owning a car

Building wealth

Getting married

Having children



Pursuing my passion


Being debt-free

Owning a home

Being happy

Women

Men

34Base: Total: 1010; Female: 573; Male: 437Q24: Do you have a plan in place to finance your American Dream?

Women less likely to say they have a plan in place to finance their American Dream

34

Do you have a plan in place to finance your American Dream?

43%

57%

Yes No

57%

43%

Yes No

MenWomen

9%

26%

91%

74%

35Base: Total=1,010; Millennials=806; Generation X=103; Baby Boomers=101Q26: Imagine a world where only one item in each pair is possible. Would you rather...

Women more likely to say they’d rather be happy than be rich

35

Be rich Be happy

Preferences (by Gender)

Women

Men


Urban versus Rural

37Base: Total: 973; Millennials=778; Generation X=98; Baby Boomers=97Q17. Where in the U.S. do you believe that your American Dream is most attainable?

Millennials say their American Dream is most attainable in a suburban or urban area

5%

10%

30%

26%

Baby Boomers

Gen X

Millennials

All 33%

32%

40%

34%

All

Millennials

Gen X

Baby Boomers 23%

14%

11%

13%

Baby Boomers

Gen X

Millennials

All

Where in the U.S. do you believe that your American Dream is most attainable?

Outside the U.S.It is not attainable anywhere

1%8%

2%2%

Baby Boomers

Gen X

Millennials

All

It is not more attainable in one type of area than in another

24%

23%

26%

35%

All

Millennials

Gen X

Baby Boomers 2%2%2%2%

Baby Boomers

Gen X

Millennials

All

Urban Suburban Rural

38Base: Total: 1010; Urban: 360; Suburban: 472; Rural: 178Q3: To what extent do you agree or disagree with the following statements?

Those who live in urban areas are more likely to say they would move to a new city without a job lined up

38

Agreement with “I would move to a new city without a job lined up”

51%

72%78%

49%

28%22%


Somewhat disagree +

Completely disagree

Somewhat agree +

Completely agree

39Base: Total: 1010; Urban: 360; Suburban: 472; Rural: 178Q3: To what extent do you agree or disagree with the following statements?

Those who live in urban and suburban areas are more likely to say they need to job hop to advance

39

Agreement with “To be paid what I feel I'm worth and advance in my career, I have to switch employers every few years”

43%

61%70%

57%

39%30%


Somewhat disagree +

Completely disagree

Somewhat agree +

Completely agree

40Base: Total: 1010; Female: 573; Male: 437Q15: Please select the most important ingredients from the following list that describe your American Dream.

Those living in suburban and rural areas are more likely to choose more “ingredients” to create their American Dream

40

Ingredients of the American Dream

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%




Owing pet/s


Making a difference

Falling in love

Traveling the world

Making it on my own

Owning a car

Building wealth

Getting married

Having children



Pursuing my passion


Being debt-free

Owning a home

Being happy

Urban

Suburban

Rural


41Base: Total: 1010; Urban: 360; Suburban: 472; Rural: 178Q24: Do you have a plan in place to finance your American Dream?

Those who live in urban and suburban areas are more likely to have a plan in place to finance their American Dream

41


59%

41%

Yes No

36%64%

Yes No

46%

54%

Yes No

42Base: Total: 1010; Urban: 360; Suburban: 472; Rural: 178Q18: Overall, which of the following do you think is the key to achieving the American Dream?

Opportunity is deemed by all groups to be more essential to achieving the American Dream than innate ability

42

Importance of Opportunity vs. Innate Ability in Achieving the American Dream

19% 21% 20%

81% 79% 80%


Innate AbilityOpportunity


California

44Base: Total: 806; CA: 174; Non-CA: 632Q3: To what extent do you agree or disagree with the following statements?

Millennials living in California are more likely to say they have more opportunity than their parents did to be successful

44

Agreement with “I have more opportunity than my parents had to be successful”

21%

36%

79%

64%

CA Non-CA

Somewhat disagree +

Completely disagree

Somewhat agree +

Completely agree

45Base: Total: 806; CA: 174; Non-CA: 632Q3: To what extent do you agree or disagree with the following statements?

Millennials living in California are more likely to say it’s harder to be successful now than when their parents were starting out

45

Agreement with “It's harder to be successful now than it was when my parents were starting out”

26%33%

74%67%

CA Non-CA

Somewhat disagree +

Completely disagree

Somewhat agree +

Completely agree

46Base: Total: 806; CA: 174; Non-CA: 632Q20: How confident are you that you will attain your American Dream?

Millennials living in California are more confident that they will achieve their American Dream

46

Confidence in Achieving the American Dream

22%

23%

29%

43%

32%

28%

14%

5%

4%

1%

Non-CA

CA

Completely confident Very confident Somewhat confident Not very confident Not at all confident

Completely confident + Very confident: 66%

Completely confident + Very confident: 51%

47Base: Total: 806; CA: 174; Non-CA: 632Q24: Do you have a plan in place to finance your American Dream?

Millennials living in California are more likely to have a plan in place to finance their American Dream

47

64%36%

Yes No


45%

55%

Yes No

California Non-California

Appendix: Methodology

49

Survey Methodology

This survey was conducted online within the United States by Maru|Matchbox on behalf of Bank of the West between January 17th – 23rd, 2017 among its proprietary Springboard America panel.

1,010 individuals aged 21-70 completed the survey, including 201 based in California.

• 806 Millennials (Ages 21-34)– 356 Age 21-27 Younger Millennials– 450 Age 28-34 Older Millennials

• 103 Generation X (Age 35-51)

• 101 Baby Boomers (Age 52-70 )

Gender, household income, and regional data is balanced to U.S. Census with a boost to the California market.

Bank of the WestCorporate Communications

180 Montgomery Street

San Francisco, CA 94104

Contact: Anita Fox [email protected]

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Documents

2017 Bank of the West Millennial Study · The Millennial Mindset: ... 2017 Bank of the West Millennial Study: Financing the American Dream. 26 85% of Millennials are confident they