2024 Psychology of Money
About the Report:
The 2024 NextGen Psychology of Money Report, developed in partnership with National MI, provides key insights into the financial behaviors and mindsets of Gen Z and Millennials. Kristin Messerli, executive director of FirstHome IQ, led the research and developed a money personality quiz, designed to help people understand their tendencies in financial mindset, planning, and spending. Key themes include a lack of confidence, cautious investment approaches, and gender differences in financial optimism.
We collected survey responses from 300 participants aged 18 to 55+ using a survey collection platform, ensuring a balanced representation of both Gen Z and Millennials. Participants rated their agreement with various statements that reflect their financial behaviors, attitudes, and decision-making processes. The survey data were then analyzed to categorize individuals into three main profiles: Money Mindset, Financial Planning, and Spending Behavior.
About NextGen Research
We began research for the first annual NextGen Homebuyer Report in April of 2020 and have since launched 8 surveys, totaling over 6,000 respondents between the ages of 18-44, alongside countless interviews with NextGen homebuyers. A common theme through the past three years has been that of education and distrust.
Key Insights
LOW CONFIDENCE: Only 29% reported confidence in their ability to manage their finances
EQUAL DEPENDENCE: Consumers are equally split between preferring a collaborative or independent approach to financial planning.
LOW RISK TOLERANCE: 43% feel more comfortable with safer investments
GENDER DIFFERENCES IN FINANCIAL OPTIMISM:
Men are 63% more likely to be optimistic about finances compared to women.
Men are 24% more likely to believe they can achieve their financial goals compared to women.
NO AGE DIFFERENCES: The analysis highlighted no significant generational differences, with NextGen showing similar responses to other age groups.