Millennials Have Better Savings Habits Than You Think
February 28, 2018
By Michael List
The day after my last commentary "The Latte Factor: How to Save Money" was posted, I knew what I was going to write about today. My previous commentary was based on a survey from Acorn that found 45% of millennials spent more on coffee than they saved for retirement. The very next day, I saw a separate report “2018 Better Money Habits Millennial Report” which apparently surveyed the other half of millennials. The results of this survey found that 47% of millennials have already saved $15,000 and sixteen percent have saved over $100,000 (obviously, this group is doing more than just ‘Skip the Latte’ having accumulated six figures in less than 15 years).
The report indicates a majority of millennials are saving money (63%), have a savings goal (57%), and are budgeting (54%). However, not all the savings is earmarked just for retirement. Of the millennials participating in the survey, the following is a breakdown of their savings priorities: emergency fund (64%), retirement (49%) and purchase a house (33%).
The report was encouraging and insightful and as the author indicates, “Millennials deserve more credit –both from themselves and from others - for their mindfulness when it comes to money and their lives.” But, when we think about what this group of millennials has done from a time value of money perspective, it gets very exciting. Use the same assumptions I used in the Latte Factor, 3% growth over 30 years. The factors that lead to $100,000 today will grow the balance to $650,000 over the next 30 years.
A ‘latte’ can happen between now and then, but the outlook is not all bleak. How is your progress in your march to a successful retirement?
For over 135 years the people of Security National Bank have worked to help people develop and implement positive plans for their future. Through personal contact and goal setting, many of those we work with have developed consistent positive habits that have added to their net worth and helped them achieve their goals. An ancient philosopher said “Every journey begins with the first step.” Let us help you plan for your journey to success. Contact us today for a brighter tomorrow.