Millennial Money: The truth about Gen Y savings (or is Gen Y saving enough?)
As a young millennial, I often wonder how my savings compare to other millennials when looking at my account balance. And if you just happen to do the same (admit it!), then the following figures may very well help eliminate some of your long-standing financial doubts.
Think you’re not saving enough money? You’re not alone!
“Millennials have gotten both better and worse at saving money,” the survey report reads. “For example, a greater percentage of millennials now have $10,000 or more in savings. And, a smaller percentage have less than $1,000 in savings.”
But the shocking observation lies elsewhere, as it turns out there is a growing percentage of millennials who have not managed to save anything. In other words, a whopping 46 percent of American young millennials aged 18 to 24 today have $0 saved, compared to 31 percent in 2016.
Conversely, the percentage of young millennials who have $10,000 or more in their savings account has jumped five percentage points between 2016 and 2017, rising from eight percent to 13 percent.
Do older millennials fare any better?
Meanwhile, older millennials, defined by the survey as those between 25 and 34, are not faring much better than their younger counterparts.
The percentage of older millennials with $0 in savings (41 percent) is lower than that of younger millennials (46 percent). “Still, there’s an increase of 8 percentage points among older adults who have nothing saved compared to last year’s survey,” the report reveals.
On the other hand, results are pretty much the same in the $10,000+ category, with 20 percent of older millennials today having at least $10,000 in savings as opposed to just 15 percent in 2016.
Bottom line, while a large chunk of millennials is getting worse at saving (or should I say better at NOT saving), those on the upper spectrum seem to be growing better and better at it.
When it comes to the reason behind this shift, the study attributes the growing zero-savings millennial trend to a combination of external and internal factors including overwhelming student debt (made worse due to low starting salaries) and millennials’ paycheck-to-paycheck spending patterns.
On a slightly brighter note, it looks like women are making some progress toward closing the gender savings gap and have made significant improvements in saving money over the past year, with the percentage of women with $10,000 or more in savings doubling from 10 percent in 2016 to 20 percent this year.