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How Millennials Save and Spend

Portrait of young woman.What are some of the things you’ve heard about Millennials? (This generation is sometimes defined as those born between 1980 and the late 1990s, although some extend their definition to people born in the early 2000s.) Perhaps that they clash with previous generations in the workplace? Or maybe that they want a lot without working for it? Millennials often get a bad rap but The Washington Post reported on a Bankrate survey that found that these young adults have better saving habits than older adults:

“…most millennials are saving something: 37 percent were saving 5 percent or less of their pay for retirement, emergencies and other financial goals.

That may not sound like much, but it is more than double the 18 percent of people who said they weren’t saving anything. Plus, many millennials are saving much more.”

The other thing you may have heard about Millennials is that they entered the job market at a really tough time. So in addition to not buying homes and not starting families right away, Millennials are also more likely to save their earnings because of their experiences when they started adulthood.

Daily Finance published another article that aims to shed more positive light on a generation has received so much bad press. “Millennials and Credit Cards: How We’re Getting It Wrong” places more blame on parents and adults who came of age earlier than on Millennials. The oldest Millennials, those who starting working during the Great Recession, are justifiably skeptical about credit cards. They also came of age just as the 2009  CARD Act was put in place. This aim of this act was to help all Americans handle credit better. As a result of the CARD Act’s restrictions, fewer Millennials got credit cards in college so they have less practice with credit and some didn’t build up credit history before entering the workplace. Daily Finance encourages the parents of younger Millennials to have them practice by getting them a credit card with a limit and teaching them about spending…but you may also want to encourage them to save.