TD Bank Financial Education Survey Finds Millennials are Cautious Banking Customers

Survey says millennials need the most advice on saving and budgeting.

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Mar 10, 2014, 09:48 ET

CHERRY HILL, N.J., March 10, 2014 /PRNewswire/ -- TD Bank, America's Most Convenient Bank^®, announced the results of the TD Bank Financial Education Survey focusing on millennial banking habits, which revealed that these young adults take few risks when it comes to managing their money. In fact, 47 percent of millennials describe their financial personality as being cautious when it comes to overall personal finance habits. The nationwide survey polled more than 2,000 millennials (ages 18-34) about their banking behaviors and preferences, as well as their go-to sources for financial information and advice.

"The results of our study prove that financial education is not only a key component of financial success, but also that millennials want more support with their personal finances," said Nandita Bakhshi, Executive Vice President, Retail Distribution and Product, TD Bank. "Millennials need to feel empowered to reach out to their bank and have their questions answered so they become more confident about their financial futures."

Millennials Mirror Family Banking Habits and Seek Advice from Family Members

According to the survey, millennials are relying mostly on financial institutions and their families for advice.

49 percent of responding millennials see their parents as primary influencers in shaping their banking and financial views.
40 percent still say they turn to parents and family as a source of information.
54 percent of responding millennials are going in to their bank branch for information; 62 percent are going online.

While 59 percent of millennials reported that they are "extremely" or "very" knowledgeable about their day-to-day banking products like checking accounts, they still want advice on personal finance topics, including:

savings (32 percent)
creating a budget (30 percent)
credit cards (26 percent)

In addition, very few of the respondents report to having had formal financial education training, such as a class at school, a seminar at a local bank or online courses, while 69 percent of respondents had received no financial education lessons at all.

Changing Behaviors

According to the TD Bank survey, millennials are banking online and on their mobile devices more frequently than in a branch. In fact, 90 percent of survey respondents said they use online or mobile tools for their everyday banking activities, such as checking balances or paying bills, and 57 percent said they are using mobile banking more frequently than they were last year.

Millennials who responded to the survey said they check their balance and banking activities daily (35 percent) or weekly (53 percent). While checking their balance is the most popular activity online, millennials reported that they are still visiting bank branches as frequently as they did last year, mostly to deposit or withdraw money. Those who do their banking in a branch feel it is more secure and enjoy the in-person service.

"While millennials are banking more online and on their mobile device, 52 percent are still visiting a branch as frequently as they did last year," said Bakhshi. "The branch visits plus the increased mobile banking activity shows that they appreciate a bank that can offer them the tools they need to succeed, whether this is in a branch, online or through a mobile app."

Regional Banking Behavior

23 percent of Boston respondents feel extremely knowledgeable about banking products vs. 13 percent of Philadelphians who feels extremely knowledgeable.
40 percent of New York City respondents check their account balance daily vs. 21 percent of Philadelphia respondents who check their balance daily.
54 percent of Floridians prefer going in to a bank branch to receive banking advice vs. 53 percent of Philadelphians who prefer asking their family for advice.
46 percent of New York City respondents want advice on saving vs. 28 percent of Boston respondents who want advice on saving.

Full survey results including regionally specific findings from Boston, Florida, New York and Philadelphia, and Hispanic and gender findings, can be found at https://mediaroom.tdbank.com/finedsurvey.

Survey Methodology
The study was conducted among a nationally representative group of consumers from January 28 through February 10, 2014. The total sample size is 2,031 millennials (ages 18-34) and the national sample size of 1,530 has a margin of error of +/- 2.5%. The survey was hosted by global research company Angus Reid Public Opinion.

About Angus Reid Public Opinion
Angus Reid Public Opinion is the Public Affairs practice of Vision Critical—a global research company. Vision Critical is a leader in the use of the Internet and rich media technology to collect high-quality, in-depth insights for a wide array of clients.

About TD Bank, America's Most Convenient Bank^®TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth^®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.

TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD." To learn more, visit www.td.com.

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SOURCE TD Bank