problem statement / subject of study

PRO BLEM STATEMENT

A collision of economic and cultural systematic problems has reached a tipping point, brought on by stagnant incomes, exacerbating credit card debt, astronomical student loans, ridiculous housing prices, and low retirement savings. These trends have sadly become the new normal, especially for millennials. (Richardson, 2019, pg. 3) According to a study from The George Washington University School of Business (pg. 7), Millennials are the age group with the lowest level of financial literacy. And, although the majority of Millennials have inadequate financial knowledge, they are not consulting financial professionals to compensate for that deficit (Schuyler S, Buckley E & Lusardi A, 2015, pg. 14).

A major issue for the millennial generation is their lack of interest in hiring financial advisors. And, unlike other generations that trust that financial advisers are serving their best interests when they receive investment advice, many millennials seem to be more skeptical of financial advisers’ motives. (U.S. Public Interest Research Group, 2015, pg. 4) There are more than 83 million Millennials in the United States. That’s more than one-quarter of the nations population. (Boneparth, 2017, pg. 32) Millennials are the near future of the economy and are far from being ready for all the financial burdens to come.

With Millennials current trend of severe personal debts, their low urgency on gaining financial knowledge and their lack of trust in financial advising; this displays that there is an opportunity for financial institutions to better understand how they can engage and gain the trust of Millennials to get them to invest in their finances for a more financially stable future.

SUBJECT OF STUDY

This study will explore how design management can help financial institutions develop strategies to get millennials engaged, interested and invested in their personal finances.