Millennials Are Optimistic About Their Money
July 8, 2015 | Your Finances
And yet, Millennials aren’t only upbeat about their money—they’re actually more optimistic than everyone else.
It sounds surprising at first, but members of this demo might actually be basing their rosy feelings off of some real truths, Bankrate.com’s April 2015 Financial Security Index found.
In the survey, 30% of Millennials report an improvement in their stash of savings this year over last. Compare that number to the 50-plus crowd, where a mere 13% feel better about the state of their savings.
And this demo is buoyant about more than just their bank accounts.
In fact, 32% of employed 18- to 29-year-olds also report better job security this year than last. Overall, only 23% of all Americans feel the same.
So with their seemingly healthy nest eggs and soaring job confidence, it’s no surprise that 33% of this demo feels that their overall financial situation has markedly improved since 2014.
Once again, that stat outshines the 50-plus crowd—a mere 19% consider themselves in an overall better money state.
All isn’t totally sunny for this generation on the financial front, however.
It turns out that net worth is one key category where Gen Y seems to be coming up short. Just 18% report an increased net worth over the past 12 months, as opposed to 29% of 30- to 49-year-olds.
“Millennials are lagging behind on net worth because not as many are homeowners—and they are the least inclined of all age groups to participate in the stock market,” explained Greg McBride, Bankrate.com’s chief financial analyst. “This extreme risk aversion in investing has the potential to be problematic to their eventual retirement security, [even though] Millennials do mark progress in other areas.”
LearnVest, Inc. is owned by NM Planning, LLC, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, Wisconsin.