Millennials and money: are they ready for the responsibility of wealth?
A freak mid-November snow storm didn’t stop some twenty-five young adults from participating in Newport Private Wealth’s popular educational and networking forum, NextWave. The evening’s discussion was led by three of our young associates, providing both professional insight and their own personal experiences on the thought-provoking topic of managing finances with a significant other.
Participants were asked to reflect on their own relationship with money by completing the phrase “today, money means _____ to me”. The millennials slowly began to share their own words: “safety”, “independence”, “future”, and then became more comfortable shouting out, “good wine”, “freedom” and even “stress.” The responses aligned with the results of a recent study ranking security, happiness, more responsibility, fun and stress as the top five answers among the general population according to a report by CNBC.
Surprisingly, estate planning emerged as one of the most popular issues of the evening. Although it is rather ironic as these young couples are closer to the beginning of their lives; this group was genuinely concerned with protecting their families should an end-of-life event occur. This result was contrary to a survey conducted by Lawyers’ Professional Indemnity Co., which found that 88% of Canadians between the ages of 27 and 34 do not have a will. Perhaps this demonstrates that adult children of wealthy families actually understand their financial responsibilities.
This event was Newport Private Wealth’s fifth in a series of educational and networking seminars that is a component of Newport’s NextWave program. NextWave is an initiative to prepare young adults to better manage their wealth in the years ahead. It is a catalyst for discovery, a forum for learning and an opportunity for networking. It was borne out of a desire expressed by our clients that their children and grandchildren develop healthy money management habits and ultimately gain the experience needed to steward wealth, responsibly.
The NextWave program is typically implemented through a multi-generational approach. A senior advisor at Newport Private Wealth works with parents (or grandparents); whereas, a younger associate provides guidance to adult children in the hope of building a long-term relationship. Managing wealth is about building trust and fostering relationships. At Newport Private Wealth, we take a different perspective. Yours.