After a slow start, Millennials are starting to move forward in their finances.
For some time now, Millennials have been hampered with student loan debt and a sparse job market. While this may still be the case for many in this generation, there are signs of life. According to recent trends, their financial decision-making is on an upswing. And given the size of the Millennial population, this is good news for everyone.
Here are three encouraging trends about Millennials and money:
- They are starting to save more. According to a recent survey, Millennials are increasing their savings. In 2013, Millennials were saving 5.8% of their income. That number has increased to 7.5%. Certainly, they need to set aside more, but the increase is an encouraging sign nonetheless.
- They are putting money aside for their children’s college. One of the biggest financial challenges to Millennials has been student loan debt. Because of their debt load, many start their earning years with a significant financial hole to climb out of. And it looks like they are determined to ensure that their kids do not find themselves in the same situation. When it comes to college savings, Millennials are the most intentional generation. Sixty-eight percent of Millennials claim to have a plan to save for their kids’ college. Forty-three percent are saving in a 529 Plan. No other generation matches this.
- They are not as eager to get a credit card. Almost 50% of Millennials do not have a single credit card. To compare, 29% of Americans do not have credit cards. Fifty-three percent of those between 18 and 24 have never applied for a credit card, and 35% of those between 25 and 34 have never applied. In order to avoid debt, many are opting for debit cards instead.
Certainly, these numbers do not indicate that the Millennials have arrived in their financial decision-making. But they are improving. Understanding the long-term consequences of saving and debt are critical step in bettering your financial health.
God has designed us to be conduits through which His generosity flows. And when it comes to money, we can do this best when we get our financial house in order.
These statistics are encouraging to me. I hope they are to you as well. And I hope that they motivate you to consider your own financial health and whether or not your financial decision-making is helping or hindering your ability to be a conduit through which God’s generosity flows.
The Millennials are starting to get it right. So can you.