Millennials Significantly Increased Their Savings Last Year
According to the latest Better Money Habits report from Bank of America, Millennials significantly increased their savings in 2019. Among adults age 24-41 with money in savings, 24% have over $100,000 in the bank. That is an increase of 16% from the prior year’s survey.
Nearly three in four (73%) Millennials said they were saving for some sort of life goal. Nearly all (90%) said they would be willing to make sacrifices to reach their financial goals, namely cutting back on dining out. Over half said they had an emergency fund, and three-quarters said they were saving for retirement. The average Millennial started saving at 24 years old, compared to an average age of 30 for Gen X and 33 for Baby Boomers.
Over the last year, Millennials have reported several strong financial strides. The full report from Bank of America shows that 39% of Millennials have improved their credit score in the last year, and 29% received a raise from their employer. Additionally, 27% said they reduced their monthly spending to boost their savings potential.
Despite making solid financial decisions, 76% of Millennials had some form of debt: 40% have auto loans, 25% have student loans, and 37% carry debt on credit cards. Millennials believe this debt hinders them from taking steps for the future, such as buying a nice home (42%) and saving additional money (40%).