Which Generation is Currently the Best at Saving? Millennials
Of all the stereotypes about the Millennial generation (and there are many) the idea that they’re not monetarily minded and aren’t fiscally responsible is probably one of the most common. However you may be surprised to learn that those between the ages of 18 and 29 are actually saving more of their money than Gen Xers or even Baby Boomers.
A recent survey by Bankrate found that the 18 to 29-year-olds they spoke with were more likely to save at least 6% of their paychecks than those over 30. Additionally Millennials were the least likely to not save anything. In fact those between the ages of 30 and 49 were far and away the most likely to save 0% of their income.
The survey also looked at how financially secure people in these generations were when compared to last year. Although the number of Gen Xers who said they were better off this year was slightly higher than Millennials who said the same, only 70 respondents between the ages of 18 and 29 said they were worse off. For comparison 240 of those aged 30 to 49 and 200 people between the ages of 50 and 64 said their financials had taken a turn for the worse in the last year.
Bankrate also discovered the good news that Americans of all ages are saving more. However, they also found that approximately one-fifth still aren’t saving anything. Meanwhile those who save at least 10% of their income rose to 28% this year compared to 24% last year and one-sixth of all Americans now save at least 15% of their income.
“Millennials have a greater inclination toward saving for both emergencies and retirement than we’ve seen from previous generations. Much of this is attributable to the financial crisis and Great Recession coming during the financially formative years for many Millennials,” says Greg McBride, Bankrate Chief Financial Analyst. It’s interesting to think that, for all the knocks on the younger generation, they might actually be more financially secure that the generations calling them” lazy” and “irresponsible.” When it comes to saving money it seems that many Americans could afford to be a little bit more like Millennials.