Carpe generation: effective engagement with millennial through philanthropy.

• Author: Laughton, Kim
• Position: Financial advisement

Millennial make up the largest generational group in the United States. In a recent Reuters article, Deloitte Consulting estimates that this group will control 89 trillion in assets by 2018, and its expected to grow from one-third of the overall workforce to nearly half in the next five years, according to Standard & Poor's. This represents a significant opportunity for financial professionals, and that opportunity is growing.

The Millennial Approach to Finance

Millennials came of age during one of the worst financial crises in recent history, and this experience has engendered a conservative approach to personal finance--and a focus on long-term planning. For example, a recent BankRate survey found that 63 percent of Americans between the ages of 18 and 29 do not have a credit card (www.bankrate.com/ finance/credit-cards/more-millennials-say-noto-credit-cards-1.aspx).

Along those lines, 70 percent of millennials are already saving for retirement, according to TransAmerica Center for Retirement Studies, and Bloomberg says as many as 20 percent are "super-savers"--they preserve at least 15 percent of their salary each year in a 401(k) plan and start saving younger.

A Big Opportunity, a Big Challenge

Millennials seem like an ideal market for financial advice, but many aren't looking for it. Only about 30 percent use a financial adviser, according to TransAmerica--and financial professionals may be partly responsible. Various surveys show that many financial professionals de-emphasize or simply do not seek millennial clients. That will change, however, as client books mature and younger clients need to be brought in to maintain a healthy practice. Financial professionals who have not yet figured out how to connect with millennials will soon need to crack that code.

A Philanthropic Solution

Philanthropy offers a powerful way for financial professionals to connect with clients and prospects of all ages, including the millennial generation. More than 80 percent of millennials gave to charity in 2014, according to the Millennial Impact Report, including 3 percent who donated more than 85,000. It's notable that most of their generosity, either with money or through volunteering, is self-motivated: Only 22 percent said their donations were solicited by their employer.

What motivates millennials is actually quite simple: A passion for a cause that's close to their hearts. The charities people support often reveals their deepest held beliefs and...