Millennials are Better at Saving Money than Their Parents
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Millennials are Better at Saving Money than Their Parents

Posted on Monday, April 18th, 2016 at 7:00 am
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Millennials are Better at Saving Money than Their Parents | FreeCoupons.comMillennials had the misfortune of growing up at a time when the economy was absolutely dire. Good paying jobs required a college degree, and many young people ended up with expensive student loan debt. Despite this misfortune, a study shows that Millennials are actually better at saving money than their parents are.

A study was done by Bankrate, which has over three decades of experience in financial publishing. They are the Web’s leading aggregator of financial rate information, and they continually do surveys that relate to finances.

The study done by Bankrate found that Millennials are better at saving money than any other age group is. It found that 62% of Millennials are saving more than 5% of their income, and that 29% are saving more than 10% of their income. The same survey also found that 50% of older adults (defined as age 30 and up) were saving more than 5% of their pay.

One of the reasons why Millennials are better at saving money than their parents are is because of the Great Recession. They watched their parents struggle to pay mortgages and other bills, and decided to take actions that could help them avoid going through the same financial struggles if another recession happens. What are they doing?

Making a Good Savings Account
Millennials who are employed are opening savings accounts. They are regularly adding money into it. The money in the savings account is intended to grow and be used in case of an emergency. Or, it can become sort of like a retirement fund.

Avoiding Credit Cards
Millennials feel very uncomfortable about the idea of ending up with credit card debt. In order to avoid racking up an expensive credit card debt, they do one of two things. Some entirely refuse to get credit cards.

Others limit themselves to only one or two credit cards that they use responsibly. In other words, they don’t spend much money on their credit card, and they pay off the entire balance every month (to avoid interest payments).

Paying Down Student Loans
It is easy to see why many Millennials are uninterested in credit cards. Their generation has the highest amount of student loan debt. It makes no sense to take on more debt if you can avoid doing so. They make efforts to pay off their student loan debt. They are very motivated to become debt free.

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Good Tip: Saving money is important – especially if you have a lot of expenses like bills to pay, loans to pay off, and all the other things that drain your bank account. Figuring out a way to save money can feel tedious to some, and like a punishment to others. U.S. News suggests that you try one of these money saving challenges. The “No Eating Out for a Month” Challenge This one is self-explanatory. The goal is to avoid eating out for an entire month. This might be super easy for people who enjoy making meals at home. People who really enjoy dining out, or ordering food to be sent to their home, may struggle with this one. It’s worth a try because spending money on take-out is more expensive than buying groceries. The Pantry Challenge This one is a variation of the “No Eating Out for a Month” challenge. The goal is to use up all of your groceries before you buy more. It forces you to try and remember why you bought a food or beverage that you don’t know what to do with, and gives you the opportunity to find a way to use it. The one exemption to this challenge is the foods that have expired. Don’t eat them! Throw them in the trash. The “No Spend” Challenge Make a goal to avoid spending money during an entire weekend. The only exemption in this challenge is that you are allowed to pay bills. This challenge is interesting because it requires creativity. You must be creative and find workarounds for problems that you would typically solve by spending money. You may have a different outlook on spending after finishing this challenge.