Why Are Millennials Money Hungry?
Millennials have consistently been the butt of jokes in the last decade. Many older generations criticize millennials for not preparing for their future or being lazier than previous generations. But these stereotypes are largely inaccurate. In fact, 63 percent of millennials are saving their money, according to Bank of America’s Better Money Habits millennial Report.
Once seen as inefficient long-term planners, foolish spenders, and dependants, the majority of millennials are financially responsible. The same report found 59 percent of this generation feels financially secure. That is an impressive number for a generation that got its start during the Great Recession.
How are millennials reaching this financial security? Classic savings goals and budgeting remains an effective tool for anyone to establish financial stability. 57 percent of millennials have an overarching savings goal, and 54 percent are budgeting their money to reach this goal. There are a number of apps that can help people create financial goals and keep you on track as you spend. These apps are usually free and sync to your bank accounts and credit cards, keeping all of your financials in one, easy-to-use tool.
Millennials have put a value on saving, meaning they are able to save for more than just retirement. 49 percent of millennials are saving for retirement, 64 percent are saving for emergencies, and 33 percent are saving to buy their first home. Buying a home will give you equity that you can pull cash from for vacations, emergencies, renovations and more.
Millennials are not as financially unstable as some would think. 63 percent are saving for their future and budgeting to reach specific goals. In reality, this generation is just as good, or better than, their parents were at managing money and taking on fiscal responsibility.
If you aren’t in the position to put away large chunks of your paycheck, try proactively monitoring your credit score. Having a healthy credit score will give you more options for financial assistance in the future. If you can stay on top of payments and keep your debt low, you will be in a better position than most when it comes time to buy a home.
Are you a millennial? What steps are you taking to prepare for your future?