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Whether it’s paranoia from their student debt or an effort at good parenting, millennial parents are saving more en masse than Generation X.
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They also have higher rates of general saving and consultation with financial professionals, according to Business Insider.
This shouldn’t come as a surprise. Student loan debt has grown during the last three decades, as has the cost of higher education.
Since higher education wasn’t as expensive for Generation X, savings plans weren’t expected to the extent that they are now.
Millennials are saving so their children aren’t shell-shocked with student debt.
Of course, reality doesn’t always follow a plan. Junior’s college fund might be spent when a car breaks down, or the children need braces.
The improvement in savings might not be enough, either. Savings rates among Americans have seen a general decline since the 1980s, though the rate spiked upward during the recession. The last two years have seen a reversal, and the savings rate stands at 5.8 percent, but 29 percent of Americans have no emergency fund stashed away.
The mindset change among millennials to develop good financial habits is encouraging, but whether it will continue as they age remains to be seen.
