Poor millennials. Beset by studies that find they’re unable to save or manage their money wisely (Money? What money? Can you say student debt?), now they’re the subject of another study that finds they can too manage what little they have.
So says the 2018 Better Money Habits Millennial Report from Bank of America, which says that in fact millennials are doing very well, thank you, at managing money—better, even, in some cases than other generations—and not only set but meet savings goals.
They’re more likely to ask for raises, and most feel at least as financially secure as boomers or GenXers—although they are still stressed about money, with a quarter worrying about it often.
But (here’s where the “poor millennials” sobriquet comes in) silly millennials, they believe all those terrible studies that say they’re bad at managing money and don’t save anything. The majority actually believe their generation manages its money poorly, and three quarters say their generation overspends.
Yet 63 percent of millennials are saving, nearly as many as boomers (75 percent) and GenXers (64 percent).
And 54 percent are budgeting, the same percentage as GenXers and just a little less than boomers (57 percent).
Do they have savings goals? Yes, 57 percent have a savings goal, more than either boomers or GenXers (both at 42 percent) and 59 percent feel financially secure (that’s more than the 54 percent of GenXers who do, and only slightly less than the 63 percent of boomers who do).
And boy, do they stress about money—35 percent say they’re not saving enough; 21 percent stress over not planning and saving for retirement; 20 percent fear not being able to afford a home; 19 percent stress over health care costs; 17 percent each worry about student loans, spending more than they should; credit card debt; not having enough to invest; and—oh, yeah—losing their jobs.
No wonder they ask for raises more often than other generations—46 percent have done so in the last two years, and 80 percent of millennials who asked for one got one.
Finances are also the top stressor in millennial households, and nearly one out of five don’t know how much their spouse or partner makes; 28 percent of millennial couples say they keep their finances separate—also more than any other generation—and, if they had kids, 27 percent of older millennial parents are already saving for their kids’ education (30 percent say financial considerations was a major factor in their decision to start a family).
But—and it’s a big but—48 percent of millennial parents don’t know what a 529 plan is, so it’s true that they don’t have quite all the answers yet.
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