Do You Have $100,000 In The Bank? 1 In 6 Millennials Do
There’s been a lot of negative news when it comes to millennials and money –specifically, the idea that we have none — but a new survey is proving those in this demo are actually great at saving.
Get this: An impressive 16 percent of millennials now have savings of $100,000 or more. This is more than double the amount of young savers who put away the same amount in 2015, found a new Bank of America survey.
“Despite many of these young Americans coming of age a decade ago during the worst financial crisis since the Great Depression and despite being saddled with high student loan debt, Millennials appear to be getting their financial lives in order and taking money matters more seriously.
“Sixteen percent say they have $100,000 or more in savings, up from 8 percent in 2015. And nearly half (47 percent) have $15,000 socked away, up from 33 percent in 2015,” reported USA Today.
Bank of America’s 2018 Better Money Habits Millennial Report found that 63 percent of Millennials who were surveyed said they “are saving.” Still, they’re saving less than Baby Boomers, 75 percent of which are saving. However, millennial savers are impressive nonetheless. About 54 percent of Millennials say they have a budget, with about three of four (73 percent) saying they live within their budget each month. “And another 57 percent say they have a ‘savings goal,’ which is higher than the 42 percent of Gen Xers and Boomers who say they are saving with a goal in mind. About 60 percent say they “feel financially secure,” reported USA Today.
So what are Millennials saving for? Emergencies were the top priority, with 64 percent of Millennials putting money away for this reason. Nearly half (49 percent) said they were saving for retirement and 33 percent said saving to buy a house.
“They deserve more credit. Millennials are actually doing better than you—and they—might think,” Andrew Plepler, global head of environmental, social and governance, told the newspaper. “Their financial habits have become more disciplined. They’ve built it into their lifestyles.”
Yet, Millennials still have some major savings challenges. Employment is one. One in four Millennials said they work in the “gig economy,” or do short-term contract work or freelance work, which means their income is not steady and they don’t have the benefit of an employer-sponsored retirement account, such as a 401(k).