Financial Goals Consumer Survey Results Sharon Brant Head of Market Insights December 2018

Financial Goals Survey Methodology Conducted in partnership with Socratic Technologies Utilizing the Socratic Forum online community All Interviews conducted in December 2018 1,009 Total Consumer Respondents

Key Takeaways Most are positive about the current state of their personal finances at the end of 2018 2019 goals focus on making more money and saving money (for retirement and emergency funds) Yet, these are among the goals that were least successful in 2018 By generation: Gen Z Lagged other generations regarding their positivity on personal finances They are most heavily focused on making more money in 2019 and secondly reducing their spending and impulse purchases They (along with Millennials) are highly positive about 2019, in general – i.e. personal finances, job market, overall economy, interest rates, and stocks Millennials More interested in obtaining insurance and life events in 2019 than other age groups They are also more positive than older generations about 2019 Gen X and Boomers Most concerned about saving for retirement in 2019 Gen X has the added goal of saving for children’s education in 2019 – both are goals where only about one-half of Gen X rated themselves as successful in 2018 Financial Goals

Key Takeaways Financial guidance has the potential to be an acquisition tool for banks in 2019 among Gen Z and Millennials Millennials are in the market for financial guidance – they were most likely to receive financial planning or investment guidance in 2018 and are most likely to obtain it in 2019 Financial guidance is something that Gen Z and Millennials are open to receiving from their banks Considering that Gen Z and Millennials are more open to switching banks in 2019, it may be a tool that banks may be able to leverage for acquisition purposes Other reasons to consider switching banks include lower fees, account opening incentives, loyalty programs, and security/protection Additionally, Gen Z and Millennials value convenience of location as motivation to switch banks Financial Guidance

Most are positive about the current state of their personal finances at the end 2018 Only Gen Z lags older generations on positive feelings about finances Base: Total Consumers, n=1,009 M457. How would you describe the current state of your own personal finances?

Have Goals Changed? Making more money and saving money (for retirement and emergency funds) are top financial goals in 2019 – all three are greater areas of emphasis in 2019 than 2018 By generation, Gen Z is heavily interested in making more money and reducing spending Relatively, Millennials are more focused on insurance and life events in 2019 Gen X is more focused on retirement and children’s education Boomers are also saving for retirement Base: Total Consumers, n=1,009 M459. Which, if any, of the following will be financial goals for you in 2019? M460. Which, if any, of the following were financial goals for you in 2018?

While top 2019 goals are making more money and saving money (for retirement and emergencies), these are among the less successful financial goals achieved in 2018 Highest self-ratings on 2018 goals include having enough insurance, giving to charities, and saving for education By generation: Gen Z rates themselves as the least successful at achieving their goals in 2018 Millennials rated themselves most successful all around compared to the other generations Base: Had a financial goal from M460 in 2018, n=859 M461. How would you rate how well you achieved each of the following financial goals in 2018?

Regarding predictions that came true in 2018, most can agree about prevalence of free shipping on holiday orders and an increasing role of Corporate America in our lives Millennials appear most plugged-in with the importance of technology companies and e-commerce, as they were more likely than their older counterparts to believe that in 2018… Google, Apple, and Amazon became more important than banks in payments Retailers became better at using data to deliver more natural customer relationships Mobile shopping would account for more than one-half of holiday sales Base: Total Consumers, n=1,009 M462. Below are some predictions that were made at the start of 2018. How much do you agree or disagree that each prediction came true in 2018?

Gen Z and Millennials are more positive about how things will improve in 2019 than are Gen X, Boomers, and Retirees Comparatively, men are more positive than women about 2019 prospects Base: Total Consumers, n=1,009 M456. What are your predictions for each of the following in 2019?

Millennials are most open to financial planning or investment guidance – they were most likely to receive it in 2018 and most likely to obtain it in 2019 Base: Total Consumers, n=1,009 M463. In 2018, did you obtain financial planning or investment guidance from an advisor or investment provider? M464. In 2019, how likely are you to obtain financial planning or investment guidance from an advisor or investment provider?

As consumers age, they trust their parents less and certified financial advisors more Base: Total Consumers, n=1,009 M465. Which of the following do you consider trustworthy sources of financial advice that you would consider using in 2019?

Certified financial planners are the most trusted source for financial advice; only Gen Z disagrees and trust their parents more Base: Consider at least 1 other source trustworthy for financial advice, n=838 M466. Which source do you trust most for financial advice?

Financial advice has the potential to be an acquisition tool for banks in 2019 among Gen Z and Millennials Financial advice is something that Gen Z and Millennials want from their banks And, Gen Z and Millennials are more open to switching banking relationships in 2019 Base: Total Consumers, n=1,009 M467. How much do you agree or disagree with each of the following statements about your relationship with your bank? M468. In 2019, how likely are you to leave the credit union or bank where you have your primary banking relationship for another financial institution?

Cash is king – lower fees and account opening incentives are among the top reasons to consider switching banks Though loyalty programs and security/protection also play important roles By generation: Gen Z and Millennials are more likely to consider convenience an important consideration to switching Gen X are most keyed into security protection Boomers and Retirees are least willing to switch for any reason Base: Total Consumers, 1,009 M469. Please select up to three items below that are compelling enough to at least consider switching your banking relationship to another financial institution?