Before we go into the details on how much Americans and particularly Millennials have in savings, let’s first define who Millennials are. People who have reached adulthood around the beginning of 21st century are called Millennials, Generation Y or Net Generation. While different sources place them into different year ranges, Time Magazine states that Millennials are born between 1980-2000.
When it comes to savings, Americans are falling behind. In 2017 GoBankingRates conducted a survey and found that 57% have less than $1000 in savings. It is a little disheartening because the number is actually huge. Let’s put it in in real numbers and visualize, the population in US is about 323mln and 57% of it would be about 184mln people. Turns out this many people can’t come up with $1000 in emergency situations.
Among “Younger Millennials” (ages 18-24), about 46% have $0 in savings and 67% have less than $1000 saved. The picture is pretty much similar when you look at older Millennials (25-34 y.o) where 41% have no savings at all and 61% have less than $1000 to their names.
We all wonder what are the reasons so many people are unable to save? Well, there can be many different factors. One of the most common reasons is that young adults have lots of student debt and low starting salaries. Another reason could be that some young adults are just simply not good at managing their money which often results in living paycheck to paycheck.
What is the solution here? Budgeting, tracking expenses and developing good habits of saving money would be a good start.
Photographs by Giphy.
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