For too long, Millennials have gotten a bad rap about money and their ability to save for a rainy day or retirement.
However, a new “Relationship With Money” survey by financial services firm Edward Jones found that not only do more Americans born between 1981 and 1996 consider themselves “savers” than those in their parents’ Gen-X cohort (48 percent vs. 46 percent), but that Millennials also were better at socking away emergency funds (75 percent vs. 66 percent).
That’s right. The same Millennials whose motto could be “Why buy a car when you can Uber?”
“This debunks the myth that Millennials aren’t as financially focused as other generations,” says Edward Jones investment strategist Nela Richardson.
And the survey isn’t some outlier. It’s supported by other research.
The Federal Reserve Survey on Consumer Finances found that while Millennials are deep in debt, more than 42 percent have retirement accounts, the highest share for those under 35 years of age since 2001.
Part of what’s driving Millennials’ emphasis on saving could stem from lingering memories of the Great Recession.
“Back in the late 2000’s, the oldest cohort of millennials entered the worst job market since the Great Depression of the 1930’s,” says Richardson.
“For younger millennials, watching their parents and other family members go through that experience may have also made them more aware of the risks of a market downturn or some other unexpected event, such as losing a home or a job, and so they’re more conservative when it comes to spending and saving in their adult lives,” says Richardson.
One potential alarm bell uncovered by Edward Jones’ sampling of more than 2,000 adults nationally age 18 and over: While 92 percent were honest enough with themselves to recognize there was room for improvement in their financial health, the very thought of saving money sufficed to make more than a third feel either “anxious” or “overwhelmed.”
If that sounds familiar, here are three steps to consider:
People often have emotional responses to money. Getting a big bonus at work can make you feel euphoric; agonizing over what to do with it can be paralyzing even as the logical part of your brain (invest at least most of it) fights it out with the emotional part (splurge it all!). What’s key is knowing that letting your feelings dictate your spending, saving and investing choices can lead to poor decisions.
Keeping your cool starts with identifying your main goals – a down payment on a new home, college for your children, a comfortable retirement – and then sticking to a sound, long-term path for attaining them.
Meaning, someone with whom you’re comfortable sharing your finances. It could be a family member. Or a professional financial advisor, such as a local one at Edward Jones, who has the perspective, experience and skills necessary to help you make the moves appropriate for your situation.
“Whether you are strapped with student debt, saving to buy a home or trying to build an emergency fund, there are trade-offs that must be made in balancing these short-term goals and our long-term financial future, such as investing for retirement,” Richardson says. “Without a sound financial strategy, most people tend to be reactive rather than proactive and feel that their money is controlling them.”
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
As a dedicated financial consultant in Singapore, my mission is to empower young working adults with the knowledge and tools they need to achieve their financial goals and retire early. Through expert financial planning, I guide my clients on the path to financial freedom and security.
I understand the challenges that young professionals face when navigating the complex world of finances. My goal is to simplify this journey for them, ensuring they don’t waste their hard-earned money on the wrong products and services.
With a wealth of experience and a deep understanding of the local market, I customize financial strategies that align with each individual’s unique circumstances and aspirations. Whether it’s building a strong investment portfolio, managing debts effectively, or planning for long-term wealth creation, I am here to support and guide them at every step.
Together, we will create a roadmap to financial success, empowering young adults to embrace their future confidently and retire early, with peace of mind and financial independence. Let’s embark on this journey towards a secure and prosperous tomorrow.
By submitting this form, I confirm that
提交此表格,即表示
In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.
根据《个人数据保护法》,鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料(例如姓名,证件号码,联系电话,邮寄地址,电邮地址和照片)。 该政策可在本公司网站上查寻,网址为 https://fa.com.sg/data-protection-policy/.
By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.
提交此表格,即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策
Subscribe to our newsletter to receive updates on our latest content!
By submitting this form, I confirm that
提交此表格,即表示
In compliance with the Personal Data Protection Act, Financial Alliance Pte Ltd (“FAPL”) seek your consent to collect and use your personal data (e.g. name, NRIC, contact numbers, mailing addresses, email addresses and photograph) for the purposes of and in accordance with FAPL’s Data Protection Policy, which can be found on FAPL’s website at https://fa.com.sg/data-protection-policy/.
根据《个人数据保护法》,鑫盟理财私人有限公司征求您的同意向您收集并使用您的个人信息。鑫盟理财将根据公司的个人数据保护政策所阐述的用途使用您的个人资料(例如姓名,证件号码,联系电话,邮寄地址,电邮地址和照片)。 该政策可在本公司网站上查寻,网址为 https://fa.com.sg/data-protection-policy/.
By submitting this form, you are deemed to have read and understood FAPL’s Personal Data Policy.
提交此表格,即表示您已阅读并理解鑫盟理财私人有限公司的个人数据政策