Millennials and Money | Institute (2024)

FAQs

What is the average savings account for millennials? ›

Millennials took the lead with $9,299 saved, on average, in 2023. Generation Z followed closely behind with more than $6,000 saved, and Generation X came in third with $5,132 saved for the year. Baby boomers came in last with just over $4,000 saved.

Many struggled to get jobs, particularly following the Great Recession, when the nation's unemployment rate hovered around 10 percent for over a year. Their wages took a massive hit, too. On average, millennials lost about 13 percent of their earnings between 2007 and 2017, according to economist Kevin Rinz.

Millennials have it better than everyone thinks, accumulating wealth faster than anyone else since the pandemic, new data shows. Younger generations' average wealth is $259,000—an $85,000 increase during the past five years. Millennials may not have it so bad after all.

Millennials prioritize experiences over material goods, with significant spending on dining out, travel, and self-care products. Despite their preference for online shopping, they also value in-person socialization.

14% of Americans Have $100,000 Saved for Retirement

Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.

How Much Does the Average 70-Year-Old Have in Savings? According to data from the Federal Reserve's most recent Survey of Consumer Finances, the average 65 to 74-year-old has a little over $426,000 saved. That's money that's specifically set aside in retirement accounts, including 401(k) plans and IRAs.

Millennials embody a set of evolving values and aspirations that greatly influence their choices and behaviors. This generation highly values authority, achievement, and influence, demonstrating a strong desire for control, success, and recognition.

When Millennials Make the 1% Mark — For Their Age Group. Consider that millennials are toward the younger end of earners, which plays a role in where they fall on the net worth continuum. “They hit the top 25% at around $50,000 and the top 1% at about $175,000,” Jennings said.

Buying through online retailers like Amazon and directly from a company's website is also popular. Gen Z and Millennials are most interested in buying through social media and from a company's mobile app.

Which generation cares most about money? ›

While older generations believed that they would have ample opportunity to earn wealth, most Gen Z grew up with an understanding that the economy won't always be in their favor. Therefore, they are much more careful with their money and spend a lot more time researching their purchases.

A 2023 study by HarrisPoll on behalf of CreditKarma found that 69 percent of Gen Zers in the U.S. and U.K. were using cash more than they did in 2022.

If you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.

The national average for Americans between 25 and 30 years of age is $20,540. According to Ryze, this amount is achievable for young adults save a minimum of 15% of the average annual salary of early 20s workers in the U.S. “The median salary for this age group is around $38,500 per year.” Ryze says.

“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”