Your Generation is Making These Money Mistakes
July 29, 2015 | Your Finances
Whether you’re aiming to save more for retirement or rein in your daily trips to the ATM, it can help to lean on a friend for support—especially if they’re endeavoring to change the same behaviors.
So where can you turn to find someone grappling with similar financial pain points?
Well, according to new research, you don’t have to look further than peers in your own age group.
In a survey of more than 11,000 people, education company Financial Finesse zeroed in on the top three money mistakes among Millennials (those born between 1981 and 1996), Gen Xers (born between 1965 and 1980), and Baby Boomers (born between 1946 and 1964).
Giving substance to typical Millennial stereotypes, the survey revealed that young adults struggled with adequately planning for the future more than other demos.
Only 47% of survey respondents had enough stashed away to cover expenses in the event of an emergency, and just 40% carried enough life insurance to replace their income.
And though 83% of working Millennials contributed to a retirement account, their Gen X and Boomer counterparts had them beat with participation rates of 89% and 93%, respectively.
But while Millennials may fail to plan ahead, Gen X struggles most with day-to-day financial management, thanks to growing family priorities and time constraints.
Just 53% pay their credit card balances in full each month, and only 21% admitted to checking with their partners to determine an overarching investment strategy and avoid overlapping assets. And, even though the majority of Gen Xers are saving for retirement, only 17% were confident they’d meet their goals.
As for the money pitfalls bugging Boomers, the report found that they were largely ill-prepared for their golden years—as only 16% have long-term care insurance, despite increasing longevity and rising high care costs, and 65% fully expect to need to work past their 65th birthday.
Perhaps, as a result, only 26% of the oldest generation felt confident about a bright financial future.
LearnVest, Inc. is owned by NM Planning, LLC, a subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, Wisconsin.