Millennials get a bad rap.
Especially when it comes to money.
According to a CNBC report in May 2017, other generations had a poor perception of millennials as savers.
That report cited a survey that said Americans viewed their elders as the better savers, as only eight percent of those who responded viewed millennials as savvy when it came to money. That figure pales in contrast to other age groups, as 19 percent said those in Generation X were good savers, compared to 45 percent of baby boomers, and 54 percent of seniors.
Additionally, it was said that millennials are more likely to prioritize things like travel (81 percent), dining (65 percent) and fitness (55 percent) than to have any sort of emergency or retirement savings.
Well don’t look now, but studies are actually finding that millennials are becoming better savers than the older generations.
The same study that cited perception of savings by generation showed that millennials are actually saving up to 19 percent of their income per year, compared to 14 percent saved by Gen X-ers, 14 percent by baby boomers, and 12 percent by seniors.
While millennials may be more likely to allocate their money in different ways, it appears they may still understand the value of saving for emergencies, retirement and even investing.
Let’s dive a little deeper to learn how millennials are actually becoming better savers.
The Study
Another study, this one performed by Bankrate.com, a banking information site, found that the number of Americans saving in general was beginning to increase.
The study found that 31 percent of Americans were found to have enough money in savings to cover them for six months in case of a large medical expense, debt, or other emergency, while only 24 percent of those who responded to the survey said they didn’t have any savings.
This study also found that while millennials didn’t necessarily have more money saved than their counterparts, a higher percentage of millennials did have some back-up savings in case of emergency.
It broke down like this:
- Six Months Or More: Baby boomers take the edge in this category, with 38 percent saying they had enough saved to cover expenses for a half-year or longer, while only 23 percent of millennials said they had those type of reserves.
- Three-Five Months: This was the largest differential. Among 27 percent of millennials said they had enough saved to cover between three to five months, compared to just 11 percent of baby boomers.
- Less Than Three Months: Again, millennials take the edge here. Twenty-two percent of millennials said they had enough money stashed away for emergencies lasting under three months, while only 15 percent of baby boomers answered the same.
- No Savings: In a narrow decision, it was found that 27 percent of baby boomers had no savings, while only 25 percent of millennials had none.
Put Those Savings To Use
Now that we’ve debunked the myth that millennials are poor with money management, allow us to lend some advice.
This goes for people of all stages in life and of all generations: Eventually, the need for a stable, consistent income is going to arise.
Whether it’s a new business venture, emergency, or even retirement, making an investment that can provide stable, reliable monthly income can make a world of difference.
Our innovative Fixed Income Fund provides peace of mind to go with a steady stream of monthly income that you can count on.
Our terms are flexible, simple, and easy to understand, and investing in the Fixed Income Fund requires no investor fees, management fees, or transaction fees.
We can help you manage your income with a risk averse investment that won’t compromise your principal value.
When the time is right for you to make an investment you can count on, simply contact Tactical Wealth to learn more.
