Financial advisors working with millennials may need to probe a little deeper to make sure they get the full picture from their clients because close to a third of millennials lie about their finances, according to a recent report.
Thirty percent of affluent millennials say they have lied about their spending or investing either to their advisor or to a money-management application, according to a nationwide survey of 1,405 individuals conducted by Investopedia.
That’s compared to 20% of Gen-Xers who lied about spending or investing, Investopedia found. And that’s despite the fact that the majority of millennials expect honesty from the professionals they work with and the tools and products they use.
“Honesty” was selected by 89% of millennials as the number-one quality they seek in financial products and professionals, followed by “trustworthy” and “has my best interests in mind,” tied at 86%, according to the survey.
Embarrassment over their spending habits was cited by 46% of millennials who lied as the reason, Investopedia found.
Thirty-four percent of millennials who admit to lying say it’s because they feared their advisor would judge or shame them, according to the survey.
Despite the additional hurdles advisors face with millennial clients, it’s also the generation that’s most trusting of the profession.
Sixty-five percent of affluent millennials say advisors are very trustworthy, while the figure among Gen-Xers is only 58%, Investopedia found. And 55% of millennials believe advisors are the most trusted source of financial information, according to the survey.