Economic shift driven by millennials' spending patterns and fiscal behaviors
Millennials are challenging the stereotypes surrounding their financial habits, according to recent surveys. The PNC Bank's "Better Money Habits" Winter 2018 survey indicates that this generation is more focused on saving and budgeting than previously thought.
The survey findings reveal that Millennials have caught up with older generations in terms of financial security and savings habits. Since 2015, Millennials have made significant strides in their personal finance habits, outperforming both GenXers and Baby Boomers in setting savings goals. Over half (57%) of Millennials set a savings goal, compared to 42% of GenXers and Boomers.
Moreover, the number of Millennials with $15,000 or more in the bank has increased from 33% to 47%, and the number of Millennials with $100,000 or more in the bank has doubled, from 8% to 16%, according to the same survey.
In the area of home ownership, the Federal Reserve's data shows an increase in the number of Millennial buyers purchasing their first home. The number rose from 34.7% in the fourth quarter of 2016 to 36% in the fourth quarter of 2017.
However, the survey also highlights areas where Millennials can improve. For instance, 66% of Millennials have nothing saved for retirement, and only slightly more than a third (34.3%) take advantage of employer-sponsored retirement plans when they are eligible.
To address this issue, Millennials without access to a 401(k) often turn to tax-advantaged individual retirement accounts (IRAs), such as Roth IRAs, to save for retirement. They also invest in low-cost index funds or ETFs, pay off high-interest debt, build emergency funds, and invest in personal development or side businesses to increase their income and savings capacity.
A panel of financial experts, including a Certified Financial Planner (CFP), can help Millennials save for retirement. Engaging in an online and video discussion with Millennials can also provide insights into their personal finance habits and strategies for saving for retirement.
In conclusion, Millennials are demonstrating a higher level of financial responsibility compared to their stereotypical portrayal. They have shown robust money habits in terms of savings and budgeting, as revealed by recent surveys. Millennials can start saving for retirement by opening a traditional or Roth Individual Retirement Account (IRA). Report findings from the online and video discussions in print and video stories for the audience.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- Hydrogen Energy: Sustainable Innovation or Resource Exploitation?
