Millennial Money
Trends in Millennial Money Management
1. Millennials are Saving for Retirement More Than Previous Generations
Millennials saw their parents’ retirement accounts dwindle to frighteningly low levels and have responded to that by starting their retirement funds early.
A recent study from the TransAmerica Center for Retirement Studies found that 70% of Millennials have started saving at the ripe age of 22 and roughly the same percentage of Millennials have opted-in to their 401(k) plans at work.
2. Millennials are Saving More as Whole
While Millennials are saving more than their Gen X and Baby Boomer counterparts, the gender pay gap is still present, which is also affecting saving levels. A Bureau of Labor Statistics study found that women ages 16 to 24 earn just 89% of what their male counterparts make.
Because of the wage gap, 26% of men are saving ten percent or more of their income compared to 9% of women saving at the same rates. Over 50% of female Millennials surveyed are only saving 1-5% of their income.
3. Millennials Fuse Technology and Personal Finance
Millennials grew up in the age of the internet, and social media is practically second nature to them. Millennials’ aptitude for digital technology and social media has completely transformed the way they live their lives. Everything is connected — the internet is ground zero.
Leonard Greenfeld
Based in Sydney, Leo is a financial writer who cares about debt and financial independence. His posts explore Fintech, current events and impacts on individuals, families and their finances.