MEMPHIS, Tenn. — Forget everything you think you know about millennials and money! That includes the stereotypical image of a 20-something living in the parents’ basement.
New research reveals millennials are saving more of their money, and, in some cases, more than other age groups.
This certainly might not be the case for every young adult, so WREG also talked to experts about ways millennials can start saving.
The post college finance story is familiar for Lisa Williams.
Starting salaries weren’t high, but payments on student loans were.
Working in the non-profit world also meant her passion to serve made it difficult to save.
Fast forward a few years, she’s a newlywed and recently landed a job as the Public Relations Coordinator at City Leadership.
“I’m just now getting to a point in my career where I have the means to deal with all of life’s expenses,” said Williams.
She and her husband started the process by sitting down with a family friend and financial advisor.
“He sat us down and he’s like ‘guys, it’s important to start thinking about this stuff now.'”
A recent study from Bankrate.com shows more millennials are doing the same.
Mark Hamrick is a Senior Economic Analyst with the company and talked with WREG via Skype about how young people are saving in several categories.
“Retirement savings, there are savings for a rainy day or for emergencies, and hats off to them.”
The study showed millennials saved more than any other age group, with 62% saving more than 5% of their income and 29% saving more than 10%.
Hamrick added, “This is a group of often very hard working Americans when they have the opportunity to find work.”
Millennial Personal Finance Expert Latisha Styles says the Great Recession sort of scared her peers into saving.
“We saw a lot of people struggling and we were struggling to find jobs.”
Styles paid off more than $30,000 in credit card debt a couple of years ago and is now tackling her student loans.
She says while it may seem impossible for people who believe there’s no wiggle room in their budget, it’s important to take an honest inventory of income and expenses.
Styles also added it’s critical to consider additional ways to find money to pay off debt and save “anything extra you can do can help boost your income.”
This means negotiating lower monthly bills, even taking on a roommate or second job if necessary.
“We’re working on it little by little,” Williams said.
Williams has taken smalls steps, but learned a bigger lesson along the way.
“You have to work to save, you have to work at it and constantly think about it and that it takes patience.”
Another recent survey showed more than 50% of millennials say they’re worried about paying off student loans.
Styles says for those with federal student loans, it’s critical to research plans that allow for deferred and/or lower payments.
The Bankrate survey also showed savings increased for other age groups.
However, it wasn’t all good news.
Around 20% of working Americans said they weren’t saving anything.
