Millennials are saving more money than in the past

Mar 31, 2016

If you're among those who believe that most Millennials are carefree or even irresponsible with their cash, you might want to review a new study conducted by Bankrate.com.

The data indicates that nearly two-thirds of people between the ages of 18 and 29 are saving at least 5 percent of their earnings. The figure is up significantly from a year earlier when 42 percent of Millennials were saving at this pace.

The study also suggests that Millennials are saving at a more aggressive rate than their older peers. About half of all consumers between the ages of 39 and 49 were saving at least 5 percent of their pay.

Level Financial Advisors of Amherst has some Millennials as clients. Steven Elwell, a vice president and

Steven Elwell
Credit Level Financial Advisors

partner, isn't surprised that younger people are saving a greater rate than many of their older counterparts.

“One of the bigger pieces I think is that there is clearly a recognition that there will be no pensions for Millennials -- the vast majority of them," Elwell told WBFO. “Maybe their parents and their grandparents almost certainly had a pension, but there is a recognition that they’re not going to have one. For retirement, it’s all on their shoulders.”

Many older Millennials learned the importance of saving for emergencies  when a 2008 financial crisis caused turmoil in many households.  Elwell said many Millenials struggled to find jobs after graduation. What's more, Elwell said the technology boom is providing many workers under 30 years of age greater opportunities to earn higher salaries and save more money.

"Millennials naturally grew up with technology, so it’s pretty easy for them to use and learn," he said.