Bank of America has published a research study on millennials and their money management habits, like saving and budgeting, which finds that they are just as good as or better than older generations.
According to the Better Money Habits Millennial Report, millennials (ages 23 to 37) are saving (63 percent), and they are more likely to say they have a savings goal (57 percent) than members of Gen X (42 percent) and baby boomers (42 percent). Moreover, the majority of millennials who have a savings goal meet it (67 percent).
73 percent of young adults say they worry about money often/sometimes. This stress is compounded by a misperception that millennials aren’t savvy money managers. Roughly three quarters of Americans surveyed (age 18 to 71) say that millennials overspend on indulgences and will have trouble meeting long-term goals. Even millennials themselves think so: the majority (73 percent) agree with this characterization.
Andrew Plepler, global head of Environmental, Social and Governance at Bank of America, said: “Young adults deserve more credit – from others and themselves – for the way they are handling their finances. They’re on par with or even better than older generations, which defies common stereotypes. As they continue to take on more financial responsibility and set new goals, Better Money Habits offers them resources and tools, like our Spending and Budgeting tool, to achieve them.”
The data additionally shows that young adults’ attention to savings and budgeting is growing: 47% have $15,000 or more in savings, and 16% have $100,000 or more in savings. In 2015, only 33% had $15,000 or more saved, and only 8% had $100,000 or more.
Millennials are just as likely to budget as older generations: 54%t of all millennials plan and manage a budget, compared to 54% of Gen Xers and 57% of baby boomers. Roughly three-quarters of millennials who budget stick to it.
Firmly part of a gig economy, millennials more likely to ask for raises and get them. They expect to have eight or more jobs in their lifetime and advocate for themselves at work. 46% percent have asked for a raise in the past two years, which is more than 36% of Gen X and 39% of baby boomers. 80% of millennials who asked for a raise in the past two years got one.
Nearly one in five millennials don’t know how much their spouse/partner makes and 28 percent of millennial couples keep their finances separate compared to 11 percent of Gen Xers and 13 percent of baby boomers. Thirty percent of millennial parents say financial considerations played a major role in their decision to start a family, versus 22 percent of Gen Xers and 9 percent of baby boomers.
