Updated: Jan 4
Each generation is worse at saving money than their predecessors. Significantly worse, and seriously un-prepared for emergencies.
Let's start with the facts courtesy of GoBankingRates:
Nearly 40% of Americans have $0 saved! That means $0 for emergencies. This generally leads to an increase in debt balances to absorb the weight of the unexpected.
Millennials are worse at saving than older generations. While each year this demographic gets better at saving money, the percentage of millennials that have little to no savings is much lower when compared to older demographics.
Well over half of millennials do not have enough to cover at least 6 months worth of living expenses. Which means a loss of a job would be devastating for those that fall under this statistic.
Around 40% of millennials have mounting student loan debt.
57% of Americans have less than $1000 saved up.
Though these findings are terrifying, there are some other truths that should also be noted. Older generations have been in the work force a lot longer, generally have higher paying jobs, and more life experiences that teach us the importance of having emergency cash stored away.
What can be done to help prepare younger generations to take saving seriously? Scare them with posts like this? Sure, but how about giving everyone as many avenues as possible to find ways to save. What if every purchase came with a little nudge about savings? That is one of the underlying thoughts behind the creation of From Auntie, helping families find ways to save money. From Auntie may not be an investment firm, but it is built on the firm belief that loved ones who encourage each other to save will help put each other in better financial positions.