Do millennials want financial education?

Although stressed about finances, millennials send mixed signals about their desire to learn how to become financially sound.

In a recent study, "Millennials' Engagement with Online Financial Education Resources and Tools: New Survey Insights and Recommendations," George Washington University's Global Financial Literacy Excellence Center found that:

• 55 percent of millennials grasp basic financial concepts, but only 25 percent are truly financially literate
• 92 percent state they would like to be better at money management
• 40 percent believe they don't have enough money to worry about financial education
• A majority only seek financial education when the need is urgent
• One-third feel that money is a private matter and dislike discussing it even with friends and family

More than half of millennials say they find it hard to be financially responsible even when they have the right information.

Ironically, this digitally connected generation often feels like they don't know where to turn for financial information.

This could be due to their mistrust of online financial resources. The GFLEC study shows that just over half of millennials either don't trust or are not sure if they trust resources found on the Internet. Nearly one-third of millennials also believe that information with value is not available for free and will be too expensive to use.

Of those who do not seek out financial information:

• 18 percent believe the answers will be too complicated, with another 2 percent believing there will be too much math
• 12 percent didn't know they should be looking for information
•  8 percent were too afraid to confront their personal finance choices

Offering a financial wellness program

Employers now recognize the cost of financial stress to both the company and their employees. Financially stressed employees often engage in unhealthy behaviors, suffer from physical and mental health issues and don't perform well at work.

All of this leads to absenteeism, which one study determined costs businesses $118 billion yearly.

Employees want to learn about finances. A Metlife study shows that a strong majority of employees (84 percent) want to see that help come through free employer-sponsored financial wellness programs with classes in such things as retirement planning, student loan reduction, emergency savings, budgeting and identity theft.

And for those participating in these programs, 65 percent have found them useful by helping them get their spending under control, paying off debt, preparing for retirement and more.

But what can employers do to get millennial employees on board with financial wellness education?

The answer may lie in another finding from the GFLEC study. Seventy-eight percent stated that they prefer to learn about financial topics from videos found online or via mobile apps.

However, according to the survey, offering videos and other online financial information will not be enough to ensure millennial participation.

Engaging millennials in financial education

Like most people, millennials tend to look for financial information when a specific need arises. A PWC survey shows that they seek guidance when:

• An important financial decision is looming – 42 percent
• Facing a financial crisis – 21 percent
• Experiencing a major life event – 14 percent

Additionally, millennials looking for information tend to be focused on the here and now, with more questions on student loan repayment and emergency savings funds than retirement planning. They also tend to be more interested in information when the financial decision will have a long-term effect.

For a financial wellness program to attract millennials, it needs to be individualized and flexible, allowing employees to seek information as the need arises.

Of course, millennials will not seek out financial information found in your employer financial wellness program if they do not know the program exists.

10 tips to engage this generation of employees:

1. Promote financial topics that have long-term consequences to drive interest.
2. 78 percent of millennials do not like discussing personal finances in a group, so communications about financial wellness should help reduce this social taboo.
3. Millennials believe that their financial knowledge is greater than it actually is, so find ways to encourage participation even from those with a high level of financial understanding.
4. Since 90.4 percent of this generation uses social media, develop social strategies such as peer-to-peer challenges and online communication.
5. A great way to increase financial wellness participation is through incentives.
6. Provide access to your financial wellness program through the computer, tablet, and smartphone.
7. Make financial health part of the corporate culture since millennials often take action based on the example of others.
8. Show how financial well-being is tied to the aspects of personal well-being they find important, such as happiness, spiritual balance and work/life balance.
9. Add gamification coupled with the ability to share their achievements socially.
10. Provide automatic enrollment for financial programs such as 401(k) or Health Savings Accounts.

Kris Alban is executive vice president of iGrad, a San Diego-based company that provides interactive, personalized financial wellness solutions to employers, financial institutions, colleges and universities. Its Enrich Financial Wellness platform is used by more than 300 employers, banks and credit unions.