Millennials are deal-hungry and stressed about their finances. According to new research released by Bank of America, the demographic is heavily concerned about finances, leading to conservative spending and heightened saving goals compared to older generations.
“Young adults deserve more credit — from others and themselves — for the way they are handling their finances,” said Andrew Plepler, global head of environmental, social and governance at Bank of America. “They’re on par with or even better than older generations, which defies common stereotypes. As they continue to take on more financial responsibility and set new goals, Better Money Habits offers them resources and tools, like our spending and budgeting tool, to achieve them.”
To collect the insights, Bank of America surveyed 1,500 individuals ranging in age from 18 to 71 to better understand personal finance concerns and approaches.
According to the research, 73 percent of Millennials confessed to often being concerned about money, remaining consistent to past survey results from 2014. What’s more, Millennials in addition to older generations view themselves as frivolous and incompetent with money management.
“Roughly three quarters of Americans surveyed — age 18 to 71 — say that Millennials overspend on indulgences and will have trouble meeting long-term goals,” said Bank of America’s “Better Money Habits Millennial Report.” “Even Millennials themselves think so: the majority — 73 percent — agree with this characterization.”
But those sentiments are unfounded. According to the report, 47 percent of Millennials have $15,000 or more in savings. “Millennials are just as likely to budget as older generations. Fifty-four percent of all Millennials plan and manage a budget, compared to 54 percent of Gen Xers and 57 percent of Baby Boomers. Roughly three-quarters of Millennials who budget stick to it,” the report said.
Active within the “gig economy,” or freelancing, Millennials have earned the reputation as job-hoppers. But not necessarily by choice. According to the research, 26 percent of Millennials said they have been laid off from a job.
“Perhaps as a result, more so than older generations, young adults advocate for themselves at work. Forty-six percent have asked for a raise in the past two years. Just 36 percent of Gen X and 39 percent of Baby Boomers have done the same. They’re largely successful, too. Eighty percent of Millennials who asked for a raise in the past two years got one,” the report said.
More from WWD: