Millennials are more confident about their finances than any other age group, according to new research.
Bankrate.com, a publisher, aggregator, and distributor of personal finance content on the Internet, unveils this finding in its April 2015 Financial Security Index. Conducted by Princeton Survey Research Associates International (PSRAI), the index is based on telephone interviews with 1,000 adults based in the continental U.S.
The study shows that 32 percent of employed millennials (18-29 year-olds) report higher job security relative to a year ago and just 4 percent report lower job security. Overall, 23 percent of employed Americans are feeling better about their job security now versus April 2014.
Three in ten (30 percent) of millennials say they have more in savings than a year ago, twice as many as the 15 percent who are less comfortable. In total, 20 percent of Americans are feeling better about their savings (including the 13 percent of those age 50 and older).
One in three (33 percent) of millennials say their financial situation is better than 12 months ago and 16 percent say it has deteriorated. As with savings, those who are 50 years and older are feeling worse: Only 19 percent are reporting a better overall financial situation.
Net worth is the one category in which millennials are lagging behind. The most positive sentiment is observed among 30-49 year-olds. Nearly 3 in 10 (29 percent) of them are reporting higher net worth than a year ago. Among millennials, the percentage dips to 18 percent.
“While millennials are doing pretty well financially, their net worth is being held back because they aren’t as invested as older adults in the stock and housing markets,” says Greg McBride.