FINANCIAL SERVICES
Understanding the
Millennial Generation
by Sharon A. DeVaney, PhD
ABSTRACT
The millennials, who are currently aged 23 to
35, are the youngest generation in the work-
place. At 77 million, the millennial generation
is one-and-one-half times as large as Gener-
ation X and almost equal in size to the baby
boomer generation. Hailed as digital natives,
millennials are also described as creative,
solution-focused, socially conscious, and
team-oriented. The purpose of this column
is to offer suggestions for successfully en-
gaging millennials in the workplace.
Vol. 69, No. 6 | pp. 11-14
This issue of the Journal went to press in October 2015.
Copyright © 2015, Society of Financial Service Professionals.
All rights reserved.
JOURNAL OF FINANCIAL SERVICE PROFESSIONALS | NOVEMBER 2015
11
Introduction
Generations are defined by age, period, and co-
hort. Age is the age of an individual at which life
events and transitions take place. Period is what hap-
pens within an individual’s lifetime. A cohort is a
group of individuals who have shared experiences and
events in their formative years that could lead to sim-
ilar attitudes and behaviors for the rest of their lives.
Social scientists contend that there are four gener-
ations in American society: the silent generation, the
baby boomers, Generation X, and Generation Y—also
known as the millennial generation (Meredith and
Schewe, 1994; Strauss and Howe, 1991). The silent
generation was born between 1930 and 1945. Early
events in their lives were the Great Depression and
World War II. The baby boomers were born between
1946 and 1964. Early events in the boomers’ lives were
economic prosperity and the growth of the suburban
middle class. Generation X was born between 1965
and 1979 or 1981. Early events for Generation X were
the Vietnam War and the energy crisis. The millen-
nials were born between 1980 and 2000. Early events
in the millennials’ lives were globalism; the attacks on
September 11, 2001; and the Internet Age (National
Endowment for Financial Education, 2015).
Demographics
The millennials are between 23 and 35 years old.
There are more than 77 million millennials (Taylor
 FINANCIAL SERVICES
and Keeter, 2010). The millennial generation is larger
than the 46 million who are in Generation X and the
millennials are almost equal in size to the 76.4 million
in the baby boomer generation. There are likely to be
differences between younger and older millennials. The
millennials who were born between 1986 and 1992
were entering the job market during or at the end of the
recession which began in December 2007 and ended
in June 2009, while millennials born since 1992 might
still be obtaining their education and entering the job
market (National Bureau of Economic Research).
Millennials are more racially diverse than previ-
ous generations; 47 percent are minority compared
to 37 percent for Generation X, 26 percent for baby
boomers, and 9 percent for the silent generation.
One-fourth of millennials have college degrees,
which is similar to other generations. However, mil-
lennials may exceed the educational levels of previous
generations as time passes and they complete their
education. A 2010 Pew report entitled Millennials:
A Portrait of Generation Next projects that millenni-
als will be the most educated American generation
(Mottola, 2014).
Studies show that people pursuing higher educa-
tion report a higher quality of life. Using data from
the General Social Survey, Oreopoulos and Salvanes
(2011) found that schooling is associated with a lower
likelihood of being unemployed or being on welfare,
success in the labor and marriage markets, better
health decision-making skills, happier marriages,
more successful children, more civic participation,
and decreased risky behaviors.
Challenges
Many millennials have faced and are facing a
slow job market and a lot of college loan debt. The
College Board (2014) stated that 60 percent of stu-
dents who earned bachelor’s degrees in 2012-13
from public and private nonprofit institutions grad-
uated with debt. The average student loan debt was
$27,300 (Cho, Kiss, and Yu, 2015). Including bor-
rowing for both undergraduate and graduate studies,
JOURNAL OF FINANCIAL SERVICE PROFESSIONALS | NOVEMBER 2015
12
40 percent of borrowers with outstanding education
debt owed less than $10,000; 29 percent owed be-
tween $10,000 and $24,999; and 4 percent of bor-
rowers owed $100,000 or more in 2013 (College
Board, 2014). Based on the 2012 FINRA Investor
Education Foundation’s National Financial Capabil-
ity Study, 65 percent of millennials earned less than
$50,000 per year (Mottola, 2014).
Millennials have responded to the recession and
the challenging economic situation in many different
ways (Burstein, 2013). One example is social protest.
Other examples include millennials moving back in
with their parents, delaying marriage, delaying buy-
ing first homes, and starting their own businesses.
Considering their propensity for social change, it is
not surprising that millennials are involved with so-
cially responsible businesses.
Strengths
Millennials are hailed as “digital natives” (Pren-
sky, 2001). In contrast, “digital immigrants” are peo-
ple who arrived online after having a substantial life
offline. Prensky states that baby boomers and even
some members of Generation X are digital immi-
grants. Burstein (2013) who is himself a millennial
explained his early connection to technology this
way: “As first and second graders, we could write re-
ports with a word processing program and spell check
them” (page 52). Burstein continues: “Through our
formative years, however, digital technology began to
make quantum leaps almost daily in the variety and
extent of applications and functions, as well as user
access and mobility” (page 53).
Burstein (2013) believes that “the power for the
young to influence and create new technology has
grown tremendously in the last decade” (page 54). He
illustrates this point by saying that the founders of the
following companies have all been millennials: You-
Tube, Facebook, Twitter, Groupon, Foursquare, Insta-
gram, and Tumblr. Burstein points out that millennials
demand that companies should be open to comments
and criticism and those companies should listen to those
 FINANCIAL SERVICES
comments and criticism. The CEO of one company has
written, “The elites—or managers in companies—no
longer control the conversation” (page 108).
Mindset and Attitudes
Traits attributed to the millennials include:
entitled, optimistic, civic minded, close parental
involvement, values work-life balance, impatient,
multitasking, and team oriented. The traits at-
tributed to the other generations present a real
contrast. For example, traits attributed to Genera-
tion X include: self-reliant, adaptable, cynical, dis-
trusts authority, resourceful, entrepreneurial, and
technologically savvy. Traits attributed to the baby
boomers include: workaholic, idealistic, competi-
tive, loyal, materialistic, seeks personal fulfillment,
and values titles and the corner office. The traits
attributed to the silent generation include: patri-
otic, dependable, conformist, respects authority,
rigid, socially and financially conservative, and a
solid work ethic (Alsop, 2008).
Caraher (2105) has written about the millennial
mindset. She quotes a recruiter as saying, “It’s not a
question of whether or not they are right for the job,
it’s a question of is the job right for them” (page 27).
Millennials believe they are very capable and they do
not relish the idea of working their way up the ladder.
Many millennials prefer to work at smaller compa-
nies where they believe they will be able to have a
hands-on role and make a bigger impact. Millennials
are likely to say that they plan to change jobs fre-
quently. One millennial said that she had moved sev-
eral times because “No one told me why what I was
doing mattered” (page 28).
Millennials want to be happy in their work. Car-
aher (2015) interviewed millennials in their twenties
and found two distinct groups. She called them the
Digital Freedom Crusaders and the Office Tradi-
tionalists. The first group did not place much value
on being in the office at specific times. They said
things like, I am more productive at Starbucks or
at home and I should be able to work where I want.
JOURNAL OF FINANCIAL SERVICE PROFESSIONALS | NOVEMBER 2015
13
However, the second group valued office hours and
being together. They felt that being seen mattered
for advancement.
Several employers have said that millennials were
more demanding than other employees about work-
life balance (Caraher, 2015). Employers have ob-
served that millennials were willing to change jobs to
manage their perception of the good life. Employers
have noted that millennials have been very open in
expressing their wants which include: access to senior
management, having a strong mentor, and wanting a
career path, as in “What is my next opportunity?”
Nonprofit Engagement
Saratovsky and Feldmann (2015) have written a
book about engaging millennials in nonprofits. The
authors identify themselves as being “cuspers,” which
means that age-wise they are on the cusp between
Generation X and Generation Y (i.e., millennials).
Based on their experience with nonprofits, Saratovsky
and Feldmann suggest that readers of their book who
lead nonprofit organizations should (1) learn how to
engage with millennials, and (2) realize that their
nonprofit organization should be open to trying new
ideas and methods. Saratovsky and Feldmann stated
emphatically that millennials are digitally connected,
creative, solution-oriented, self-organized, and open
and transparent. They believe that millennials are
motivated as much by their personal relationships
and human connections as they are by the influences
of their technological skills and social media.
Saratovsky and Feldmann (2015) suggested that
organizations should engage millennials using four
approaches. The first approach is to provide access
to leadership and enable millennials to take an active
role in the development of their own leadership roles.
The second approach is to be transparent and allow
millennials the ability to access information on how
the nonprofit organization affects the community
and about the way the nonprofit organization raises
and spends money. The third approach is to develop
engagement platforms that are social in nature and
 FINANCIAL SERVICES
allow for greater discussion both online and offline.
The fourth approach is to create an environment in
which millennials can develop solutions and execute
strategies to fulfill solutions.
Conclusions
In summary, employers and managers need to
provide meaningful work, allow the millennials to
provide input, and help the millennial feel that he or
she is a good fit on a good team. Finally, I am reflect-
ing on how these ideas fit with a traditional classroom
setting where the professor is the “source of all knowl-
edge.” Although I have always used an open approach
in working with graduate students, I am reflecting on
how to implement these ideas in an undergraduate
classroom with a large enrollment. In the past, I taught
the importance of retirement planning by having each
student interview two employees of their choice about
the employees’ retirement plans. Students learned that
many employees knew “only a little” about their own
pension plans. Many employees admitted that they
didn’t even look at their investment statements. This
study on the expertise and mindset of the millennial
generation has prompted my thinking about changes
in teaching styles that could take place to better pre-
pare students for the workplace. n
Sharon A. DeVaney, PhD, is Professor Emeritus, Purdue
University and Editor of the Family and Consumer Sci-
ences Research Journal. While on the faculty at Purdue
University, her research focused on retirement planning,
self-employment, and credit usage. She was named a Dis-
tinguished Fellow of the American Council of Consumer In-
terests at their annual conference in May. She was honored
for her research, teaching, and mentoring of graduate stu-
dents. She holds the BS and MS from South Dakota State
University and the PhD from The Ohio State University.
Prof. DeVaney can be reached at sdevaney@purdue.edu.
JOURNAL OF FINANCIAL SERVICE PROFESSIONALS | NOVEMBER 2015
14
References
Alsop, Ron. (2008). The Trophy Kids Grow Up: How the Millen-
nial Generation is Shaking Up the Workplace. San Francisco:
Jossey Bass.
Caraher, Lee. (2015). Millennials & Management: The Essential
Guide to Making It Work at Work. Brookline: Bibliomo-
tion, Inc.
Burstein, David D. (2013). Fast Future: How the Millennial Genera-
tion is Shaping Our World. Boston: Beacon Press.
Cho, SooHyun, Kiss, D. Elizabeth, and Yu, Xilan. (2015). Under-
standing Student Loan Decisions: A Literature Review. Family
& Consumer Sciences Research Journal 43(3): 229-243.
College Board. Trends in Student Aid and Trends in College Pricing.
Washington, D.C. Accessed at: https://www.collegeboard.
org/releases/2014/new-college-board-trends-higher-education-
reports-college-prices-increase-slower-pace-student-borrowing-
declines-third-consecutive-year.
Meredith, Geoffrey and Schewe, Charles. (1994). The Power of Co-
horts. American Demographics 16(2): 22-27, 30-31.
Mottola, Gary R. (2014). The Financial Capability of Young
Adults—A Generational View. Insights: Financial Capabili-
ty—March 2014. Washington, D.C.: FINRA Investor Edu-
cation Foundation.
National Bureau of Economic Research. (2010). US Business Cycle
Expansions and Contractions. Accessed at: http://www.nber.
org/cycles.html.
National Endowment for Financial Education. (2015). What’s in a
Generational Label? NEFE Digest, January/February.
Oreopoulos, Philip and Salvanes, Kjell G. (2011). Priceless: The
Nonpecuniary Benefits of Schooling. The Journal of Econom-
ic Perspectives, 25(1): 159–184. doi:10.2307/23049443?ref=
no-x-route:8c98e9aeaa6c58e30784ec04543b336d.
Prensky, Marc. (2001). “Digital Natives, Digital Immigrants.” On
the Horizon, 9(5): 1-6.
Saratovsky, Kari Dunn and Feldmann, Derrick. (2013). Cause for
Change: The Why and How of Nonprofit Millennial Engage-
ment. San Francisco: Jossey-Bass.
Strauss, William and Howe, Neil (1991). Generations: The History of
America’s Future, 1584 to 2069. New York: Morrow.
Taylor, Paul and Keeter, Scott (eds.). The Millennial Count, Pew
Research Center (2010). Retrieved from: http://www.pew
socialtrends.org/2010,02/24/millennials-confident-connected-
open-to-change/.
Copyright of Journal of Financial Service Professionals is the property of Society of Financial
Service Professionals and its content may not be copied or emailed to multiple sites or posted
to a listserv without the copyright holder's express written permission. However, users may
print, download, or email articles for individual use.