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The Importance of Financial Advice for Young Adults

Recent findings from the 2025 Northwestern Mutual Planning & Progress Study underscore a pivotal shift in how young adults, particularly from Gen Z and Millennials, perceive their financial futures. The study reveals that 55% of Americans regard it as either "highly important" or "critical" for individuals aged 25 to 39 to reach out for professional financial guidance to ensure long-term financial security. This trend of seeking financial advice is particularly pronounced among younger generations, who are not only acknowledging their need for assistance but proactively addressing it.

In particular, the research indicates that 81% of Gen Z individuals and 82% of Millennials recognize the necessity of improving their financial planning. Notably, 28% of Gen Z and 26% of Millennials reported having consulted with a financial advisor for the first time in the past year. The primary motivation behind seeking this guidance was overwhelmingly aimed at developing a comprehensive financial plan that focuses on wealth growth and protection.

In today’s financial landscape, many young adults aspire to achieve traditional milestones such as marriage, home ownership, and starting a family, albeit later than previous generations. As they navigate these significant life events, it’s apparent that financial uncertainty often serves as a barrier to these aspirations. 46% of Gen Z stated that buying a home remains one of their primary financial concerns, followed closely by 30% expressing worries about the costs associated with raising children. Such figures reveal a stark contrast when compared to previous generations, hinting at a unique set of challenges faced by today's youth.

Despite their ambitions, many young adults feel apprehensive about potential affordability. The survey indicates that over half of Gen Z expects to accumulate an average of 3.4 children, a marked increase compared to Millennials and Gen X. However, the looming fear of not being financially equipped to support a family contributes significantly to the anxiety surrounding these aspirations.

Moreover, the research reveals that navigating the financial terrain has prompted younger individuals to lean towards professional advisors earlier than their predecessors. Gen Zers typically started collaborating with a financial advisor around age 23, in contrast to Baby Boomers who often waited until about 49 years of age. This shift not only highlights financial literacy among younger generations but also indicates their desire to align their financial strategies with personal values and priorities.

According to Williams-Kemp, Chief Product Officer at Northwestern Mutual, young adults demonstrate a clear intent to not only build wealth but to ensure their plans reflect their ideals and aspirations. Further, the overwhelming majority of young adults trust financial advisors more than other sources of financial counsel. The survey found that 33% of U.S. adults trust financial advisors more than family or friends, reaffirming the significant role that professional guidance plays in achieving financial security.

In an effort to extend the reach of quality financial advising, Northwestern Mutual has committed to recruiting over 5,000 financial professionals throughout 2025. Their aim is to empower a broader segment of the population with access to expert financial planning resources by bridging the gap between intention and action — a crucial step in alleviating the financial anxiety that permeates younger generations today.

This study elucidates the evolving dynamics of financial advice among younger demographics. As Gen Z and Millennials grapple with redefined timelines for life-stage milestones, the role of structured financial planning becomes increasingly vital. By capitalizing on early professional guidance, these generations can foster the confidence and competencies necessary to navigate their unique financial journeys towards success.