Does just thinking about your savings account make you cringe?
You’re not alone – according to a new 2016 GOBankingRates survey, 34% of Americans have no savings at all. Almost 70% have less than $1000 socked away. So, if your nest egg is a little anemic right now, you’re sadly playing par on the personal finance course.
The survey broke down the savings statistics into categories based on age groups, and the results were pretty surprising.
Young Millennials (aged 18-24), who so often get a bad rap for being too in-the-moment and less financially prudent that their predecessors are actually more likely to save than any other age group. In fact, only 31% of Young Millennials don’t have any savings.
The flip side is that this group is the most likely to have less than $1000 saved, with 41% having less than a grand in the bank. But, they are saving. Approximately 8% have savings of $10,000 or more.
Turn to the Older Millennials, and the stats show similar trends in the lower savings categories, but the number of adults aged 25 to 34 with over $10,000 in savings jumps to 15%. This percentage is consistent with both the Young (35 to 44 years old) and Old Gen X’ers (45 to 54 years old), 16% of whom have savings of over $10,000. The Baby Boomers (55 to 64 years old) are squeaking in just ahead with 17% having savings of over the $10,000 mark.
Seniors (aged 65+) are the most likely to have savings accounts of over $10,000, with 23% having at least that number in their saving accounts. While Young Millennials are surprisingly saving more frequently than older individuals, the survey made clear that seniors save the most; approximately 37% of seniors have savings of over $1,000, the largest percentage of the age groups.
The survey demonstrates that the idea of saving for major purchases, vacations, a house or just for a rainy day is not completely lost. The young are saving – not nearly enough – but they are saving. It’s a start!