Believe it or not, it's millennials!
From the whole "avocado toast" comment to publications shouting and pointing at student debt, millennials are often a lightning rod for financial criticism. But new data suggests that they're actually better savers than we give them credit for. In fact, they're currently saving more money than any other generation.
According to a new study by Bank of America and Merrill Edge, millennials (which include people ages 18 to 34) on average save 19 percent of their annual paychecks compared to 14 percent for baby boomers and generation X'ers. More than 36 percent of millennials save more than 20 percent of their paychecks each year.
And as if that weren't enough, a study performed by Princeton Survey Research Associates International showed even more promising saving habits amongst millennials, revealing that 31 percent of them have enough money to cover three to five months' worth of expenses.
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“Millennials have a savings discipline that the preceding generations lacked,” says Greg McBride, the chief financial analyst at bankrate.com. “They have a greater aversion to debt, they’re not as consumption-focused, and they have a greater propensity toward saving than we’ve seen in some time.”
So what's the millennial generation's motive? Saving for financial freedom and the ability to choose to live and work in the career they please. Instead of saving for retirement, millennials are saving for lifestyle, even if it means never calling it quits.
“Young adults tell us they are willing to do whatever it takes to achieve freedom and flexibility, even if it means working for the rest of their lives,” said Aron Levine, head of Preferred Banking at Merrill Edge.
What are your thoughts? Do you think millennials deserve the criticism they get? Let us know in the comments below!