Gift Card Granny surveyed members of the millennial generation (born between 1983 through 2000) to determine their saving and spending habits. The result of this data analyzation offers insight regarding thier investments, money-saving techniques, spending trends and day-to-day expenses.
How Much Are Millennials Saving?
67.7% of millennials surveyed stated they could save more money, while 27.4% are happy with the amount they set aside. At 30.1%, the majority of respondents save 3% to 5% of their paycheck per month and 19.64% save between 6% to 10%. There were 17.0% of respondents who claimed to save more than 20% of their paychecks; also, 17.0% stated they save 0%.
The top five expenses that reduced their targeted savings rate include car payments (39.4%), credit card debt (37.9%), student loans (32.0%), home mortgages (30.2%) and medical expenses (30.1%).
In regard to learning money-saving strategies, the majority of respondents (46.9%) stated they were taught by their mother. 36.1% educated themselves while 34.0% stated they learned from their father.
Why And How Are Millennials Saving?
63.8% of millennials have set aside money for an emergency. Others are saving for a home (52.3%), vacation (50.6%) or their retirement (34.7%). The most popular investment strategies for millennials include a savings account (84.2%), retirement fund (49.6%) and stocks (23.6%). With respect to retirement planning, 83.6% of respondents report contributing less than 50% of the maximum allowable amount while only 16.39% contribute 50% or greater. Additionally, 10.9% of respondents invest in cryptocurrencies.
Before making a purchase, 42.2% of shoppers look for a coupon or money-saving offer. 69.5% rely on the store’s website and/or email list for promotions. Online apps are utilized by 65.2% of the respondents, while 64.9% reported using coupon-scouring websites.
How Are Millennials Spending Their Money?
The greatest share of millennials' funds are spent on household expenses (43.9%) and dining out (18.74%). Other expenditures include entertainment (7.3%), clothing (7.3%) and children (6.6%). The majority of respondents (63.7%) spend $25 to $100 when dining out on average per week.