Millennials Making Less Than $15,000 Are Most Likely To Save
Even though a recent study showed that millennials are making a whole lot less than their boomer generation counterparts, a new survey delved into the spending habits of millions and found some interesting things.
According to the “Saving A Generation” survey, fashion isn’t all that important to the millennial generation. In fact, nearly 90 percent of the millennials surveyed said they would rather save $50 than use that money to buy a pair of jeans. In most cases, millennials prefer to save and spend.
“Studies show that 60 percent of millennials put away at least 5 percent of their paychecks, while only around half of adults aged 30 years or older do the same.The top reasons millennials save is for an emergency fund, buying a house, and for a vacation,” according to authors behind the “Saving A Generation” report.
Yet when it comes to traveling millennials will spend the money–and lots of it. According to the survey, 2 out of 5 millennials would spend $200 on a weekend getaway rather than put that money aside for saving. They rather spend money on a unique travel experience than on say a new TV. “Millennials often shy away from traditional travel experiences, like going on a cruise or visiting the beach, in favor of customized travel influenced by sources like social media. And even when millennials travel, the uniqueness of their experiences trumps the popularity of the destinations,” noted the study.
So what are millennials saving for? More than 12 percent look to buying a house or an apartment. Although millennials are buying homes as a slower rate than previous generations, they are putting saving aside for that purpose. They are also stashing away money for emergencies.
Interestingly, millennials making the least amount of money were the most likely to save, while those who made the most saved the least. “Millennials making less than $15,000 are most likely to save,” repeated the survey. “Respondents whose annual salaries were between $76,000 and $100,000 a year were more inclined to save – around 70 percent of these well-off millennials acknowledged putting their money into some form of savings.”