Millennials have picked up important lessons from the Great Recession and are taking responsibility for their financial stability
Millennials have picked up important lessons from the Great Recession and are taking responsibility for their financial stability.
A new Bank of America Merrill Edge report shows that more than a third of young Americans are prepared to save more than half of their paycheck to boost long-term savings.
However, their long-term fiscal plans mean that many will delay certain key life events including buying a home.
"As we observe how Americans look at their financial future, younger generations continue to rewrite the rules for the rest of us,” said Aron Levine, Head of Merrill Edge. “We're excited to see this group take financial matters into their own hands by becoming increasingly self-motivated and financially savvy. By being more conservative with their money now, they're looking to seize the financial future they desire in the long term."
The survey of 1,000 mass affluent Americans was conducted in September and reveals that 36% of millennial respondents plan to delay buying a home, 33% will delay marriage and parenthood and 54% will cut back on going out; all in order to have more money in the long term.
The Great Recession plays a key role in the decisions made by millennials, the survey shows.
More than three quarters are basing their real estate decisions on lessons from the recession with 80% expecting another recession in their lifetime and 10% expecting it within the next 5 years.
“We’ve learned a lot since the Great Recession and its monumental aftereffects in the way Americans think about their finances,” said David Poole, head of Merrill Edge Advisory and Client Services. “What’s most important is that Americans, especially the younger generation, are feeling optimistic about what’s ahead, so their conservative approach may pay dividends in the long run.”
A new Bank of America Merrill Edge report shows that more than a third of young Americans are prepared to save more than half of their paycheck to boost long-term savings.
However, their long-term fiscal plans mean that many will delay certain key life events including buying a home.
"As we observe how Americans look at their financial future, younger generations continue to rewrite the rules for the rest of us,” said Aron Levine, Head of Merrill Edge. “We're excited to see this group take financial matters into their own hands by becoming increasingly self-motivated and financially savvy. By being more conservative with their money now, they're looking to seize the financial future they desire in the long term."
The survey of 1,000 mass affluent Americans was conducted in September and reveals that 36% of millennial respondents plan to delay buying a home, 33% will delay marriage and parenthood and 54% will cut back on going out; all in order to have more money in the long term.
The Great Recession plays a key role in the decisions made by millennials, the survey shows.
More than three quarters are basing their real estate decisions on lessons from the recession with 80% expecting another recession in their lifetime and 10% expecting it within the next 5 years.
“We’ve learned a lot since the Great Recession and its monumental aftereffects in the way Americans think about their finances,” said David Poole, head of Merrill Edge Advisory and Client Services. “What’s most important is that Americans, especially the younger generation, are feeling optimistic about what’s ahead, so their conservative approach may pay dividends in the long run.”
