CHARLOTTE, N.C.–New data indicate approximately one quarter of people age 24-41 have more than $100,000 in savings, up 16% from one year earlier.
But another quarter indicated they are not saving any money at all, according to the findings from a new report published by Bank of America.
"Today's Millennials are more serious about their finances than we've seen historically," said Andrew Plepler, global head of environmental, social and governance at Bank of America, in a statement. "They have more financial acumen than people suspect."
The report found more than half of those age 24-41 regularly check account balances or track their expenses, and 46% pay their credit cards in full each month. Nearly 40% have boosted their credit score in the past year.
Savings Goals
For the millennials who are saving, retirement is the top goal with 75% citing it as their main priority, according to the report.
"Retirement is a point of real emphasis," Plepler said in the statement. "Millennials have seen their parents and the culture around them go through the financial crisis. They are more conscious of how important it is to be prepared."
According to the findings, 42% of those in the cohort indicated their savings were earmarked for travel, while getting into a first or next home is the main goal of 32%. Homeownership is an even greater priority for younger Millennials, the report found. Of those who are saving, 41% of Gen Z (under 24) and 40% of younger Millennials (age 24 to 30) are saving to buy a home.
"I think the home is still an anchor asset guiding goal-setting for this population," said Plepler. "They see it as a part of their stability in life and also wealth building."
Trade-Offs
Among the other findings:
- While more Millennials are growing their savings, 27% of them are not saving at all.
- More than three-quarters of all Millennials are saddled with debt and 16% hold more than $50,000 in debt, not including mortgages.
- 42% say they aren't able to buy a home, 21% are putting off getting married and another 21% are delaying having a baby. Others are waiting longer to start a business or move to a more satisfying job.
- Debt is keeping 18% from living on their own without support from family and friends, the report found.
- More than half of all millennials feel they are lagging behind their peers financially. Increasingly, they are stressed out. One-third worry often about their finances, up from a quarter in 2018.
- 82%, would rather buy a smaller house than a larger home at the top of their budget. Over half would opt to stay in a less desirable job with higher pay than move to a more desirable job with lower pay.