One thing that might be surprising to many is that when it comes to millennials and finances, they’re not afraid of making do with less. Especially if it means being able to save more money.
A new study shows that a growing number of millennials are savers, and are focused on retirement at an earlier age than prior generations.
The study found that the average age that millennials start saving for retirement is 24, with 73% of them being focused on saving for future goals and life milestones.
Of those who started saving early, 24% of them have already saved $100,000 or more, and 59% have saved $15,000 or more.
The top savings goals for millennials can be summarized like this:
Not only that, but 39% of millennials saw an increase in their credit score over the past year, and 29% were able to obtain a raise. Another 24% were able to increase their retirement contributions.
Even though millennials have been successful in putting money away in savings, the majority still feel like there are areas they could improve in.
For example, 51% still feel like they’re much further behind than they should be when it comes to their overall finances. Even millennials with household incomes of $100,000 or more feel like they’re still falling behind.
The biggest suspected culprit is debt, with 76% of millennials stating they owe some type of debt, and one in six millennials reported that they owe $50,000 or more, which excludes mortgage debt.
43% went on to claim that they feel like they’re falling behind their peers and have had less career success and that they aren’t earning high enough salaries.
73% claim that they’re not optimistic about their financial futures, while another 33% say they worry about money very often.
What would make millennials feel more financially secure? 26% of those making $100,000 annually said $1 million would be their ultimate goal for financial security.
Ultimately, the best way you can start saving for financial security is to make sure you have good financial habits and behaviors, and the earlier you start doing that, the better.