Saving and budgeting are big with Millennials, according to a new Money Habits Millennial Report by Bank of America, showing that they are more fiscally responsible than some may have thought – yet they also have their share of financial stress.
The study found that 67% of Millennials (ages 23 to 37) are actively saving money, while 57% indicate that they have a savings goal in mind. In this area, they are outperforming their older counterparts, with just 42% of Gen X and 42% of Baby Boomers reporting that they have a savings objective in mind too.
What about meeting their savings goals? In the study, 67% of Millennials say that they are on target, with 46% having at least $15,000 in savings, while 16% report having $100,000 on hand. They are budgeting just like the other generations, with 54% saying that they manage their finances by making a budget. This trend is on par with their elders, with 54% of Generation Xers and 57% of Baby Boomer’s budgeting too.
“Young adults deserve more credit – from others and themselves – for the way they are handling their finances,” said Andrew Plepler, global head of Environmental, Social and Governance at Bank of America.
“They’re on par with or even better than older generations, which defies common stereotypes,” he added.
Financial stress still an issue
While Millennials are saving and budgeting they are still stressed out about money, with savings being their biggest financial worry. How often do they worry about money? In the study, 73% said that they find themselves worrying often or sometimes about the state of their money.
Millennials are often characterized as being unable to manage money, with around three-quarters of Americans having that perception, while 73% of Millennials agreed. And according to the study, this misperception raises the level of financial stress in Millennials day-to-day lives.
The gig economy
As Millennials grow their careers 24% say that they are part of the gig economy, meaning that they work freelance or take on short-term contract based jobs. That’s not all. The expectation among the younger set is that they will have at least eight jobs in their life.
While Millennials are often viewed as being job hoppers, 26% report that they have been laid off, so going from job to job may be less of a choice and more of a necessity for some.
That said they are not shy about advocating for themselves, with 46% indicating that they have approached their boss about a raise during the last 24 months. Just 36% of Gen X and 39% of Baby Boomers have done so.
How successful were Millennials? The answer is very successful, with 80% of the Millennials who asked for a raise, reporting that they got it.
Do you know how much your partner makes? In the study one in five Millennials has no idea, which may be due to the fact that 28% of Millennial couples keep their finances separate, while just 11% of Gen Xers and 13% of Baby Boomers do the same.
Bank of America commissioned the Money Habits Millennial Report, which was carried out by GfK Public Communications and Social Science. They surveyed 1,500 people falling in the 18 to 71 year age range between September 22 and October 16, 2017.