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January 23, 2018 at 08:25 AM
Millennials’ money management habits compare favorably with those of older peers, yet money is millennials’ top-of-mind concern, according to a report released Tuesday by Bank of America.
Sixty-three percent of millennials in the study said they were saving, and 57% had a savings goal, compared with only 42% of Gen Xers and baby boomers.
Not only that, two-thirds of the younger cohort said they were meeting their goal.
At the same time, 73% of millennials in the new report said they often or sometimes worried about money. Indeed, they were just as stressed about finances as they were in a 2014 survey.
BofA said a widespread notion that millennials are poor money managers exacerbates their stress. Three out of four survey participants of all ages said millennials overspent on indulgences and had difficulty meeting long-term goals.
Even a majority of millennials agreed with this characterization, BofA said.
“Young adults deserve more credit — from others and themselves — for the way they are handling their finances,” BofA’s global head of environmental, social and governance Andrew Plepler said in a statement. “They’re on par with or even better than older generations, which defies common stereotypes.”
Consider: Forty-seven percent of millennials surveyed had $15,000 or more in savings, and 16% had $100,000 or more in savings, compared with only 33% and 8%, respectively, in a 2015 survey.
In addition, millennials were just as likely to budget as older generations, according to BofA. Roughly three-quarters of millennials who created a budget said they stuck to it.
