Millennials Are Indeed Saving for the Future
Millennials are often considered the “need it now” generation. But despite a reputation for impatience, this group of 20- and 30-somethings is surprisingly focused on the future.
According to a new study from Fidelity Investments, 66% of Millennials say saving for the future is just as gratifying as spending money now. More than half of Millennials are working to balance their current spending and future savings equally (57%).
The most popular financial priorities for Millennials are essential living expenses (38%), emergency funding (34%) and retirement funding (33%). A separate study from Ally Financial revealed that 66% of Millennials considered the stock market intimidating, and only 23% plan to use investments for retirement. However, 59% of respondents worried there would not be enough Social Security funding when they retire, yet most plan to use that in the future.
Even though Millennials are looking toward the future, 86% admitted to treating themselves at least once a month. These “treats” cost an average of $110 each month.
Fidelity found social media plays a role in Millennials’ financial decisions, with 63% of respondents saying social media negatively impacted their financial well-being. In addition, 62% did not know how their friends and family members afforded the lifestyle they portray.