By Ryan Velez
If you were to tally up New Year’s resolutions, chances are that being more responsible with one’s money would be near the top. Interestingly, some generations appear to be more geared towards saving than others, with Baby Boomers the least likely to make it a priority to save than the younger generations. Black Enterprise has more on the story.
A newly released survey conducted in October by Harris Poll on behalf of CIT revealed that Generation X and Millennials are at least twice as likely as Baby Boomers to prioritize saving in 2018. According to the study, 67% of Millennials and 54% of Gen Xers plan to include savings as a goal next year compared to just 27% of Boomers. The majority of all generations, however, say they will prioritize savings for emergencies: 63% of Gen Xers, 61% of Millennials, and 51% of Boomers. (The survey defined Millennials as those between the ages 18 and 36, while Gen Xers are considered 37 to 51 years old, and Boomers are 52-plus.)
“Gen Xers are in the prime earning stage of life and understand the importance of saving for both short-and long-term expenses,” said Ravi Kumar, head of Internet Banking at CIT Bank, in a statement. “High Yield Savings Accounts can be a smart choice to allow your savings to grow, while still having access to funds for short-term goals or emergencies. CDs are a good solution for longer-term savings goals.” This makes some sense. In the same vein that Gen Xers are in a prime earning stage, Millennials are coming out of school with lower-paying job opportunities and higher debt. This means they need to be more creative with their earnings, but also pay greater attention to saving methods than past generations did.
The mechanisms that the different generations are using to take advantage are also unique. Thirty-nine percent of Millennials and 35% of Gen Xers agreed that new bank programs make it easier to save compared to only 21% of Boomers. Meanwhile, 41% of Millennials and 21% of Gen Xers consider lower interest rates on loans as a good tool to save versus 16% of Boomers.