New research recently reported that millennials ‘are better educated than their predecessors, more ethnically diverse, and more economically active’, something which perhaps contradicts the way they are perpetually portrayed in the media. Additionally, Andy Lark, the chief marketing officer of accounting software Xero, has stated that seventy per cent of the UK’s 600,000 start ups launched in 2015 fell into the millennial bracket of 18-34 year olds.
But millennials also arguably face more financial challenges than previous generations, not least an uncertain economy and greater student debt. Simply put, millennials have the financial ambition without the financial know-how. The same report found that only 24% of millennials had basic financial knowledge. This is a generation clearly in need of day-to-day financial help, such as the provision of ordinary accounting services, tax optimisation and day-to-day compliance.
‘For my first ever tax return this year, I was expecting to pay £4,000’, says events manager, digital marketing consultant and millennial, Meg Pope. ‘But my accountant worked his magic and brought it down to £940. For what I saved, I would’ve gladly paid him more than the fee he ended up charging me.’ It’s a typical example of how millennials view financial assistance. Even the payout from something quite straightforward for an accountant is like monetary mana from heaven for the debt-riddled members of Generation Y.
Whilst millennials clearly need accountants, they don’t necessarily fit into the traditional clients for their financial services. However, we’re now getting to a situation where both millennials and accountants will benefit if we advisers learn exactly what they require as clients. Even those not currently hoping to start up their own business venture are likely to need help. The rise of the ‘side-hustle’ (or second job to you non-millennials), easily spotted by the forward slash separating two different forms of employment, means many will eventually want to go into business for themselves and require financial and accounting advice, even if they’re not yet aware of it.
If you’re a millennial with accounts that look like an incorrectly-solved sudoku puzzle, then do feel free to get in touch with us to get your finances in order!