Millennials: The Money-Conscious Generation?

July 3, 2015 Nemes Money

The cohort of Americans born between the years 1981 and 1997 have been called a great deal of names: Millennials. Generation Y. The Laziest Generation. Even the satirical (yet equallyannoying)”Snake People”was en style for a hot second. However according to a brand-new study from effort outfit T. Rowe Cost, a more proper term might actually be “the Money-Conscious Generation.”

Mud-slingingold-folk might want to bear in mind: The 18- to 34-year-old set isnot only better about tracking their spending and adhering to a budget than Infant Boomers, butmore of them have increased their 401(k) contributions in the past year, too. This is according to a brand-new research study from T. Rowe Rate that evaluated the spending and savings practices of more than 3,000 working adults over the age of 18. Specifically, 75 % of this group (who, for simplicity’s sake, we’ll call Millennials)told T. Rowe that they track their costs carefully, as compared to 64 % of Infant Boomers. Sixty-seven percent of Millennials adhere to a budget, compared with 55 % of Boomers. And 40 % of Millennials have enhanced their 401(k) contributions in the previous twelve months, nearly double the 21 % of Boomers who did the very same. (Though, to be fair, ideally the retirement-nearing Boomers are already saving at high rates.)

“When [Millennials] have the ways to do the ideal thing, it appears that they commonly do,”Anne Coveney, a senior manager at T. Rowe Cost, said in a statement accompanying the survey results.” They are displaying monetary discipline in managing their spending and are resisting stereotypes that this generation is prone to spend-thrift, short-sighted thinking,” she added.

The studyalso found that Millennials are conserving approximately 8 % of their yearly salarytowards retirement and Boomers are saving 9 %– both which are lower rates than the 15 % cost savings rates that T. Rowe Cost monetary coordinators recommend.

Other findings from the T. Rowe research help to impose the idea of the economically aware Millennial: 88 % of Gen Y respondents saidthey are pretty good at living within their means, and 67 % told T. Rowethey conserve “by any ways needed.” Seventy-four percent said they are more comfy conserving and investing cash instead of investing it, and of Millennials who were auto-enrolled in their 401(k) plan, an equally big bulk (79 %) stated they were satisfied that they were instantly swept in.


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