We use cookies to give you the best personal experience on our website. If you continue to use our site without changing your cookie settings, you agree we may place these cookies on your device. You can change your cookie settings at any time but if you do , you may lose some functionality on our website . More information can be found in our privacy policy.
Please provide more information.
Stylus no longer supports Internet Explorer 7, 8 or 9. Please upgrade to IE 11, Chrome, Safari, Firefox or Edge. This will ensure you have the best possible experience on the site.
Published: 1 Jun 2017

US Millennials’ Unique Financial Habits

Extra
Some 63% of US millennials are saving money to enjoy their desired lifestyle, rather than planning for retirement

US millennials (aged 18 to 34) are the first generation to make long-term financial plans for travel, dining out and exercise, rather than just focusing on saving for retirement. This is the finding of a Spring 2017 report from Merrill Edge – the online brokerage service provided by Bank of America Merrill Lynch.

Other highlights from the Merrill Edge Report include:  

  • Freedom & Flexibility: Most millennials (63%) are saving money to enjoy their desired lifestyle, compared to the majority (55%) of Gen Xers (aged 35 to 52) and baby boomers (aged 53 to 71) who are saving so they can leave the workforce.
  • FOMO Mentality: Millennials' fear of missing out (FOMO) means they are more likely to spend their savings on travel (81%), dining (65%) and fitness (55%) than saving for financial security in the long-term future. 
  • Overthrowing Stereotypes: Americans view their elders as better savers, but in reality, it's the younger generations that are saving the most. Millennials save on average 19% of their income per year, while Gen Xers and boomers both save only 14%. More than one-third of millennials (36%) set aside more than 20% of their salary annually.
  • Financially Insecure: Americans don't feel they could still achieve their financial goals if they were to get a divorce (71%), have children (64%) or live to 100 years of age (62%). To better prepare them for life's uncertainties, 48% believe they would benefit from financial education.

For more on how consumers manage their money, see Flash Finance and Rethinking Finance: Wired Money 2017.

RELATED REPORTS
VIEW ALL Reports
PANTONE®TPX
COATED
RAL
RGB
HEX
NCS