Millennials Are Stressed About Money, But They Are Saving
A recent report found that 84% of Millennials are confident about money and are focused on their finances, but they’re also experiencing a lot of financial stress. In fact, 41% reported feeling “chronically stressed” about their finances, according to the Better Money Habits Millennial Report from Bank of America and USA Today.
The report measured the financial attitudes and priorities of the Millennial generation.
While younger Millennials (18-25) are less worried than older Millennials (26-34), 67% overall worry about money “often” or “sometimes.” 82% worry at least once a month about their finances, and 58% worry once a week or more. Top areas of concern include:
- Not saving enough (41%)
- Spending too much (36%)
- Facing adulthood (26%)
- Debt from student loans (25%)
- Not planning for retirement (21%)
The cost of living is also a major concern for Millennials, and more than half worry that it is negatively impacting their ability to save.
Even though they are spending as much time on their finances as they are at the gym, Millennials are much more confident in their physical fitness (76%) than they are their financial fitness (55%). Financial fitness is defined as having savings, paying bills, minimizing debt, budgeting and preparing for emergencies.
Attitudes about finances differ across the country. Some examples include:
- In Chicago, 70% of Millennials regularly save, while the national average is 56%.
- New Yorkers are more worried about the cost of housing (48%) than Millennials in other parts of the country (25%).
- In Washington D.C., 58% of Millennials pay off their credit card balance each month. The national average is 38%.
- 25% of those in Los Angeles do not feel comfortable talking about their finances with their friends. Only 14% are uncomfortable nationwide.
- In Houston, 63% of Millennials feel “anxious” about not saving enough, while the overall average is 43%.
Not surprisingly, all Millennials feel much more comfortable with social media (34%) and technology (26%) than they do with personal finances (17%).
The good news is that a majority of Millennials are putting a priority on decreasing their debt, managing their spending and building emergency funds.