The Millennial generation has been stereotyped as having some pretty unflattering traits. Words such as entitled, disloyal, lazy, etc. come to mind. I get all types of studies and surveys sent to me for stories for the radio show and the ones on the millennial generation show that this generation is anything but like they are being stereotyped.
Here is a news flash for you – my research shows that the millennial generation is probably the most financially responsible generation around.
39 % of millennials have decided to save or invest this year’s tax refund — the most of any age group. Gen Xers came in at 23% and baby boomers came in at 33%. Only 6% of millennials plan to splurge and spend that tax refund.
I belong to generation X. Yes, we would rank as the most irresponsible generation when it comes to money. So, the 23% is no big surprise. I just know when I was in my 20’s that tax refund would be spent before I even received it. After we are the credit card generation. Why wait when you have plastic.
Moneyunder30.com released these stats from their research:
62% of Americans on average are saving anything for retirement. 86% of Millennial ‘s are saving.
Amount of money saved on average for retirement in America is $35,000. The average amount of money saved by Millennials is $7,453.
The average family savings account in America has a balance of $3,800. The average savings account balance for the Millennials is almost twice that at $6,713.
So why the shift?
There could be many reasons one could point to. My theory is that the Millennials had a front row seat during the financial crisis and watched what their parents went through and came to one conclusion. I don’t want to be like my parents. I think that this is also why the Millennial generation is so risk averse when it comes to investing. They are force fed advice to take as much risk as possible because of their age. They aren’t taking that advice.
This is encouraging news. We must stop the cycle of financial irresponsibility. The even better news is that Generation Z which is the next generation up appears to be even more financially responsible.