Millennials are financially savvy, but can they do their own taxes?

With Tax Day approaching, Leflein’s Millennials, Taxes & Money survey uncovers how millennials are reshaping businesses as they tackle their taxes.

More than half of millennials (53%) plan to do their own taxes this year. Nearly one-quarter (24%) of 18-24 year olds still rely on their parents to file for them (vs. 3% among 25-34 year olds).

A plurality (46%)  of millennials express positive feelings about Tax Day. “Responsible” is the feeling that tops the list, particularly with men ages 25-34 (26%). Younger millennials express much less positive feelings towards Tax Day compared to those 25-34 (37% vs 53% respectively).

Three-quarters of millennials (76%) are thinking responsibly, choosing to pay bills, invest, or pay off debt with any tax refund they might get.  The top 5 things millennials plan to spend their tax refund on are:

 

Nearly seven in ten millennials (68%) have used a tax preparation service or software in the past.  But what can tax preparation companies, accountants, and financial services professionals do to engage with millennials? Offer new technologies that are personalized, cost effective and offer speed are key to responding to this always-on, digitally mobile generation.

 

Today, nearly half (48%) of millennials already use one or more financial apps. Some fintech payment apps, like Paypal and Venmo, are now just as popular among millennials as direct deposit with 57% and 54% using either within the past month.

Millennials are certainly tech savvy and practical about their finances, however this group is not monolithic. Brands targeting millennials should consider their needs first when developing financial resources, products and services.

 

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