Study: Are Millennials Saving More Money Than Other Generations
This study delves into the saving and spending trends of millennials, Generation X and baby boomers. Data regarding financial topics such as spending habits, investing and monthly savings was analyzed
About The Study
Gift Card Granny conducted a 17 question, web-based survey with Gift Card Granny members. Data was collected from 3,010 consumers who have used the Gift Card Granny website; this specific analysis was based on responses from the 2,266 millennials, Generation X and baby boomers. Data was collected between March 13, 2018 through March 19, 2018. Similar to other industry studies, users do not yield a random probability sample of the target population.
Read Generational Savings: How Baby Boomers, Millennials And Generation X Are Saving Money by clicking here.
Segmenting the Generations
This study segments generational groupings by the following information.
Individuals who are aged 55 to 64 and were born between 1954 and 1963.
Individuals who are aged 45 to 54 and were born between 1964 and 1973.
Individuals who are aged 25 to 44 and were born between 1974 and 1993.
General Savings Trends
Each group expressed displeasure with their money-saving efforts. However, some voiced approval with the quantity they reserve; baby boomers (26.77%) were the most satisfied, followed by millennials (26.33%) and Generation X (24.05%).
Additionally, a portion of respondents (baby boomers at five point three-three percent, millennials at four point forty-five percent and Generation X at four point fifteen percent) communicated they couldn’t afford to save money.
The top three overall expenses that reduced desired saving amounts for Generation X and baby boomers included medical costs, monthly mortgage payments and credit card debt. Medical expenses were the largest expenditure for baby boomers. Car payments, credit card debt and student loans were the top three drawbacks for respondents under the age of 45. A home mortgage was the main expense for respondents 25 to 54.
Among the group, 34.93% of millennials, 32.99% of Generation X and 31.26% of baby boomers disclosed they save three to five percent of their monthly paycheck. Additionally, each generation had a portion of respondents that do not set aside money.
Reasons for Saving
While baby boomers claimed they were saving for retirement, the majority of millennials and Gen Xers expressed their saving efforts go towards a rainy day. Millennials specified that retirement and vacation rank among their top three reasons to save. Generation X prioritized a vacation and home before retirement. Additionally, all groups communicated that purchasing a new car took precedence over payments for college.
A savings account, retirement fund (401k or a Roth IRA) and stocks were among the most preferred type of investments for all three groups. The use of stocks were most prevailing among baby boomers.
Cryptocurrencies were a popular approach for millennials; nearly 8.5% of respondents under the age of 45 claimed to invest in emerging digital assets. Although popular among respondents between the ages of 25 to 54, cryptocurrencies ranked near the bottom for Generation X and baby boomers.
Retirement Saving Trends
A large portion of millennials (77.69%), Generation X (67.69%) and baby boomers (66.67%) claimed they allot less than 50% of the allowed contribution to their retirement. Less than 12% of all respondents are able to allocate the maximum amount.
Saving While Shopping
All three generations primarily referred to a store’s website when finding ways to save money on a purchase. Print ads were the second most popular money-saving option for baby boomers, while millennials and Generation X preferred coupon websites. Online apps were ranked third overall amongst the groups.
About Gift Card Granny
Gift Card Granny helps consumers find and compare discount gift card and has been saving shoppers money since 2009. Originally founded as the first gift card comparison site, Granny has grown from a single person operation to a team of nearly 40 employees. Today, Gift Card Granny is the largest discount gift card website on the Internet – with more than 400,000 gift card deals and over 18 million visitors a year.
Headquartered in Pittsburgh, PA, Gift Card Granny is the latest in a long line of successful gift card websites owned by Wolfe, LLC. Granny’s savviness and ability to find the best deals on discounted gift cards has earned her notoriety from many major news outlets over the years. The Today show, ABC Nightly News, the Huffington Post, Oprah, and Forbes Magazine have all written and talked about Gift Card Granny extensively.