While members of the Millennial generation – adults aged between 23 and 37 today – are often stereotyped as having poor money management skills, a recent survey showed that perception might be outdated. Approximately 16 percent of Gen Y have at least $100,000 saved, doubling the number who could make that claim just a few years ago.
In 2015, only 8 percent of Millennials had that amount socked away, based on a report from USA Today. Additionally, almost half (47 percent) of Gen Y have at least $15,000 in savings today, a significant increase from 2015 when just 33 percent had that amount.
Millennials were generally perceived as lacking financial savvy in areas like retirement planning, budgeting, and financial planning. However, the results of the survey suggest this is no longer accurate, even as many fight against a high level of student loan debt.
“Despite stereotypes of Millennials as being foolish with money and not long-term planners” this generation is behaving “quite responsibly,” said Andrew Plepler, Bank of America’s global head of environmental, social and governance.
“They deserve more credit. Millennials are actually doing better than you – and they – might think.”
The survey also discovered that just shy of two-thirds (63 percent) of Millennials “are saving,” a number that is similar to Gen X, at 64 percent, but lower than Baby Boomers, at 75 percent.
Additionally, 54 percent of Millennials asserted that they had a budget, with 73 percent saying they stick to it every month. They also outpace Gen X and Boomers when it comes to having a “savings goal,” with 57 percent of Millennials claiming to have one and only 42 percent of Gen X and Boomer respondents saying the same.
Their dedication to savings is helping them acquire larger balances. Overall, 60 percent of surveyed Millennials said they “feel financially secure.”
Having savings for an emergency was a “top priority” for 64 percent of Millennials, while nearly half (49 percent) listed retirement as a top savings goal and one-third stated they were stashing money to purchase a home.
“There financial habits have become more disciplined,” said Plepler. “They’ve built it into their lifestyle.”