Consumer Watch: The unlikely generation out saving you
OKLAHOMA CITY (KOKH) —
The word millennial has taken a negative connotation, but no matter what you think of the younger generation, they may be out saving you.
The average American is not very good a saving. Nearly 70-percent of people have less than a one-thousand-dollar emergency fund, that is according to a GO BankingRates survey. Millennials have their own kinds of struggles, like graduating school with much more student loan debt than their parents, or difficulty finding jobs that pay good wages, but in spite of those difficulties, savings is on their minds.
"It looks like they are paying more attention, a little more educated than the generation before them, the baby boomers, all indications are yes, they are paying a little bit more attention," Melinda Warren a financial expert and co-president with Hughes Warren.
The numbers show both younger and older millennials are saving some amount of money with 15-percent holding on to between one-thousand and five-thousand dollars. That is the highest percentage compared to all other age groups.
There are different ways to save, and deciding how, can be important.
"All saving is good, but especially if you are talking about retirement, especially, we are talking about a 401 (k) opportunity that is probably the best place to save," says Warren.
Warren recommends young millennials do make a point of saving for their emergency fund and retirement. If you're not making much, focus on saving one to two percent of your salary in your early twenties, and increase that number until you can comfortably put away 10 percent or more.
Unsurprisingly, low income adults struggle the most with saving money no matter their generation.
Yes, it seems impossible to save when you don't have enough for bills as it is, but take a look at your finances, and see if you can put away one or two percent. Overtime you will have a healthy emergency saving fund.