Millenials: Saving for Their Future

According to a report from Opens a new windowFacebook, everyone can relax a little when considering the youth. The surprising study found that, for the most part, millennials have the right mindset when it comes to money.

The millennials surveyed had two main financial goals: Paying down debt and saving for the future. Debt weighs heavily on the minds of young people, as 46 percent defined “financial success” as having zero debt. Perhaps that’s why when it comes to credit cards, young people tend to stay away. About 60 percent said they prefer to pay for things with cash. Also, of those who used credit cards, 46 percent did so to help build credit (wise move) and 36 percent used the cards to increase their financial flexibility.

When it comes to saving for the future, millennials are a dedicated bunch. A whopping 86 percent said saving every month was important to them and 86 percent said they were actively saving. (For the record, that puts them heads and shoulders above the population at large.) Fifty-four percent of millennials said they were saving to be more responsible and 20 percent said they were socking it away as an emergency fund.

Even with all this great news, there is room for improvement. Specifically, when it comes to drafting a financial landscape for their future. The report found that just 37 percent of millennials have a money-management plan. Now you know what to talk to your kids about the next time you see them.