Bank of America’s 2018 Better Money Habits Millennial Report (Winter 2018) is out, and the findings are surprising. The study surveyed 1400 people aged 18-71 to about their views on personal financial matters. For the purposes of the report, Millennials are in the 23-37 age range.
Here are our three biggest takeaways from the report.
Millennials are Saving!
The report found that they’re saving more than ever before. In fact, they’re doing so well budgeting and hitting their saving goals that nearly half—47%–have at least $15,000 in savings. A full 1 in 6 (16%) have $100,000 or more in savings.
That’s impressive, but even more so when you consider that 57% of Americans don’t have $1000 in savings.
Millennials are Preparing for Their Future—And Their Kids’
30% of millennial parents say financial considerations played a major role in their decision to start a family (only 9% of boomers said the same).
But that hasn’t stopped them from saving for their kids’ education. 27% of older millennials (ages 28-37) say they’re already saving for their children’s education. By contrast, the 2015 report stated that only 19% of Millennials were saving for their children’s education. Shockingly, however, the report also found that 48% of millennial parents don’t know what a 529 plan is.
Millennials are Investing
The biggest priority for Millennials three years ago was putting away money for emergencies—44% were saving for an emergency cushion and only 2% had invested in some sort of retirement account (401k/IRA/Roth).
This year’s report found that 17% are stressed by not having enough money to invest and 21% say they’re not planning and saving for retirement. Still, half of Millennials respondents put saving for retirement as a top saving priority.
Financial security is for this generation and with the right investment strategy, they’ll be able to reach their financial goals for themselves and their children.