Have millennials switched on to the importance of saving?
Written by Joseph Regan on February 01, 2018.
Here at Infinity we are pretty passionate about saving. We see it as an absolutely vital part of financial planning and something which everyone should be thinking about, but in recent times we have always seemed to be in the minority with the internet awash with articles such as this one about how individuals are failing to save. Not only does that leave them vulnerable to unexpected events such as illness or a job loss but it also puts them on course for retirement years that will be far from golden.
But a new survey of 2,000 millennials aged between 23 and 37 for the Bank of America offers a shred of hope that the tide is starting to turn. Perhaps we are not all heading for a bleak retirement after all!
Millennials, who have come of age in the shadow of the financial crisis, may have learned some important lessons the hard way, having seen their parents struggle through some difficult years. Or maybe they are just more sensible all round than the previous generation!
Whatever the reason, there are some encouraging findings highlighted in the Better Money Habits report:
67% of millennials have a savings goal and stick to it every month or most months
73% of millennials who have a budget stick to it every month or most months
47% of millennials have $15,000 or more in savings
16% of millennials have $100,000 or more in savings
Let’s hope those millennials are being savvy with their savings. It’s excellent to have accumulated savings but it’s also important to make sure that significant sums of money are managed properly. A failure to invest in suitable vehicles could mean that savings won’t benefit from compound interest and may be at risk of erosion from inflation.
We would be happy to hear from any millennials – or indeed those from previous generations – who would like to find out more about how to make their money work as hard as it can for them as well as how to protect their accumulating wealth with relevant insurance. I can recommend financial planning solutions suited to your personal circumstances whatever your age and appetite for risk. Please get in touch with me at firstname.lastname@example.org for further information.