How Are Millennials Saving So Much Money?
According to a new report, 16 percent of people born in the 1980s and '90s have $100,000 or more in savings.
Millennials have a rep for being totally broke, but apparently they're better off than we think. According to a new report, they save at least as much as—and, in some cases, more than—people in previous generations.
2018 Better Money Habits Millennial Report, which was released by Bank of America, found that 63 percent of Millennials have savings, 47 percent have $15,000 or more put away, and 16 percent have $100,000 or more tucked away.
Their secret for success is incredibly simple. Unlike previous generations, Millennials actually set savings goals and stick to them; the survey found that 73 percent of them create and follow a monthly budget.
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Here's something else: Millennials know their worth. According to the survey, 46 percent of them have asked for a raise in the past two years, compared to 36 percent of Gen X members and 39 percent of Baby Boomers. Additionally, 80 percent of Millennials who asked for a raise got one.
To compile the report, analysts surveyed 1,500 respondents ages 18 to 71 about their views on personal finance. The “Millennials” in the study were categorized as those ages 23 to 37.
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The stereotype that they're broke appears to be perpetuated by...Millennials. Even though they’re not any worse than past generations, 64 percent of those surveyed said that their generation can't manage money. Furthermore, 73 said they (and their peers) spend too much money on non-essential things, and 75 percent think they overspend more in general than those in other generations.
Looks like we should all give Millennials a little more credit.