25% of Millennials Turn To a Fortune Teller For Financial Advice

Many millennials believe they face uniquely tough financial challenges. And as the first generation to make less than their parents, living in the aftermath of the global financial crisis, they might have a point.

But fresh data analysed by Moneyzine.com suggests it might not be a lack of resources that they struggle with - it might simply be a lack of financial education.

Americans don’t talk about money

A recent study explored attitudes, experiences and behaviour around money in American families. The results paint a picture of social taboos feeding a lack of knowledge which ultimately leaves individuals worse off financially.

More than half of Americans say they never talked about finances growing up, with 25% saying it is impolite to talk about money. 35% say they were taught never to ask how much money someone makes - which explains why so many are unaware of their own and their loved one’s financial standings.

Just 58% of Americans know their own net worth - and only 38% know their partner’s. In fact, more people have checked Elon Musk’s net worth (28%) than their own family’s (24%). But money isn’t only seen as taboo in the home; 68% of Americans say they avoid money talk at work, too.

Financial taboos cause damage

Despite their discomfort with the topic, many Americans recognise the harm financial taboos cause. 56% of workers wish discussing salaries wasn’t taboo, and 50% believe openness around pay would make them work harder.

Similarly, 66% of people believe open conversations around money would help them achieve financial freedom and 62% believe it would help close the gender wage gap. But the worst effect of financial taboos might be the way it keeps individuals from seeking proper support.

Instead of building financial knowledge or saving in traditional ways, many Americans leave their financial fate up to chance. 71% have purchased a lottery ticket, and 25% of Millennials have seen a fortune teller for advice - while just one third have spoken with a financial advisor.

Better education is needed

At root, the problem is simple: financial education is not widespread, and social taboos keep parents from teaching their kids about money. A strikingly small number of Americans say they were taught how to budget (32%), save for retirement (21%), negotiate a salary (18%), or invest (17%). 

Data like this remind us just how harmful social taboos can be. We need to create a culture of openness around money, so hat future generations trust financial advisors - not fortune tellers.

Jonathan Merry, CEO of MoneyTransfers.com