Millennials may have a reputation for being broke, but according to a new study, young adults are saving for retirement earlier in their careers than previous generations — and have more money in the bank than you’d expect.
According to a Bank of America Report:
Building on a positive trend we’ve seen in recent years, we found that significantly more millennials (ages 24-41) are saving. Among those who are saving, one in four has $100,000 or more set aside – up from 16 percent in our 2018 survey. Millennials are also practicing positive day-to-day money habits and achieving financial goals – like boosting their credit scores and putting away more for retirement.
That’s exciting news (even beyond the fact that according to this article, I am still a millennial!). The survey also revealed that young adults in the U.S. are more savvy in how they manage money than their predecessors.
· 74 percent said they check their account balances
· 55 percent track their expenses
· 46 percent pay their credit card bill in full
· 31 percent plan a budget
I have noticed these practices among my friends, who as a whole tend to be frugal and fiscally responsible. According to the survey, the top three financial stressors for millennials include not saving enough, planning and saving for retirement, and not making a high enough salary. And many millennials (90 percent according to this study) are willing to make sacrifices, such as not eating out as much and taking on a side job, to reach their financial goals.
It seems that millennials are heeding the warnings of those who have gone before us to stay out of debt, save money, and avoid lifestyle creep. This is a good thing in an era of financial uncertainty, which very well could be a factor in why young people are planning ahead sooner than their elders.
Planting good seeds
This is good news for a variety of reasons, one being that finances continues to be at the top of the list for marital stressors. So single young adults in particular invest in their future marriages by setting good financial habits now (and they potentially avoid some awkward conversations as well).
Establishing good financial practices as a young person is a great investment in your future. The Bible says a man reaps what he sows; being smart with money is sowing seeds that will lead to a harvest that can bless you and others. The key is to not misplace your trust. Hebrews 13:5-6 says:
Keep your life free from love of money, and be content with what you have, for he has said, ‘I will never leave you nor forsake you.’ So we can confidently say, ‘The Lord is my helper; I will not fear; what can man do to me?’
In your fervor for preparing for the future, don’t forget that money is not your savior. God can and will provide for your needs as you follow Him with every area of your life, including how you use your finances.
Copyright 2020 Suzanne Hadley Gosselin. All rights reserved.