One common saying that I caught up with this week was, “Ask 1000 millennials about the state of their personal finances and you’re sure to get 1000 or more reasons to feel depressed about the financial security of this large generation.”
Worse of it, all our current ratio of small savings to high debt might have a domino effect on future generation.
Of course, our parents will age on a good day, how much of our low saving amounts would allow us to take care of them?
Gen X’ers are all talking about how much we owe them yet know too little.
The change starts with you reading this post to turn around how to think about your savings and how it’s affecting Millennials.
Millennials can’t seem to save
Millennials are living right on the edge — at least when it comes to financial planning and money saved.
According to a George Washington University financial literacy research, 50% of us couldn’t come up with $2,000 if an unexpected need arose.
A good example that was earlier stated taking care of our aged parents. And yeah, the domino effect rolls on as currently initiated by us the millennials. So let’s save folks!
According to a Google Consumer Survey, over 50% of Millennials have less than $1,000 in savings.
In the latest survey, 29% said they have savings above $1,000 and, of those who do have money in their savings account, the most common balance is $10,000 or more (14%), followed by 5% of adults surveyed who have saved between $5,000 and just shy of $10,000; 10% say they have saved $1,000 to just shy of $5,000.
Just 9% of people say they keep only enough money in their savings accounts to meet the minimum balance requirements and avoid fees. But minimum balance requirements can vary widely and be hard to meet for some consumers. They can vary anywhere between $300 a month and $1,500 a month at some major banks.
Some age groups are less likely to have savings than others.
Some 31% of Generation X — who are roughly aged 35 to 54 for the purpose of this survey — while being older and presumably more experienced with money than their younger cohorts, actually report a savings account balance of zero, which is the highest percentage of all age groups. Around 29% of millennials — aged 18 to 34 — and 28% of baby boomers — aged 55 to 64 — said they have no money in their savings account. Baby boomers (17%) and seniors aged 65 and up (20%) have the most money saved of any age group while less than 10% of millennials and approximately 16% of Generation X have $10,000 or more saved.
Wrapping it up
The one thing that can be said is that the savings problem is not just affecting Millennials. It’s every generation. It’s no wonder why the side gig economy is ramping up and many people are looking for alternative ways to make money online. The best way to get out of this saving issue by taking control of your financial life. Get a budget, stop spending frivolously, and start saving for retirement. Start today, not tomorrow, Millennials.
What are some saving tips that you found that work for you?
Author Bio: Brian Meiggs
Brian is the founder of My Millennial Guide. When not helping others reach their financial and career goals, Brian can be found at the gym, traveling, crossing items off his bucket list, or exploring Washington, DC.