Financial Habits of Young Adults and Millennials are Troubling
Recent articles in thinkadvisor.com, fa-mag.com and thefinancialbrand.com report: (a) parental support past age 25 is the new normal; (b) 60% of Millennials look to lottery wins to fund their retirement; and (c) the “Bank of Mom and Dad” is a major mortgage lender for young adults.
Clearly, Millennials and younger generations pose new challenges, new markets and new risks for financial institutions. Credit unions need to be sure they have risk management programs in place and they should run multiple scenario simulations to assess impacts on profitability before rolling out new programs and products.
TCT Risk Solutions provides stochastically-derived risk management tools that allow running real time simulations to test the impacts of proposed programs and products. Examples of TCT’s simulation products include its Asset/Liability Management tools.