Discover Study Finds Millennials Are Saving More Than Other Generations
January 10 2018 - 4:00AM
Business Wire
Nearly Half of Consumers Who Save are Using
More than One Savings Resource
According to a new survey from Discover, millennials are
outperforming older generations when it comes to saving for their
future. In a national study of 2,205 people, Discover finds that 81
percent of millennials are currently saving in some capacity,
compared to 74 percent of Generation Xers and 77 percent of baby
boomers.
Interestingly, 35 percent of millennials say they saved more in
2017 than the prior year. This compares to 25 percent of Generation
Xers and 22 percent of baby boomers who saved more in 2017 compared
to 2016.
Forty percent of millennials who saved more in 2017 compared to
the year prior attribute the increase to a better understanding of
how to set up a budget, followed by 26 percent saying that they cut
a recurring luxury expense.
For comparison:
- 32 percent of Generation Xers who saved
more in 2017 than 2016 attribute the increase to a paycheck bump,
followed by 26 percent that either cut a recurring luxury expense
or have a better understanding of how to set up a budget
- 20 percent of baby boomers attribute
their increase in savings to a paycheck bump, and the same amount
say they have a better understanding of how to set up a budget and
have cut a recurring luxury expense
Millennials are also more likely than Generation Xers or baby
boomers to put money aside when they are saving for a specific
goal, such as a vacation or an auto repair. The study shows that 67
percent of millennial respondents are saving for something
specific, while only 56 percent of Generation Xers and 49 percent
of baby boomers noted the same.
“While our survey shows clear differences in the savings habits
across generations, it is important to remember that consumers
should save at all points in their lives,” said Heather Roche, vice
president of Deposits at Discover. “People should start saving
early in life and stay consistent in that practice. There are tools
such as Discover’s financial goal calculator that can help give
consumers a better understanding of how best to save in order to
achieve their financial goals.”
How You Save May Be Contingent on Your Age
Generational differences exist even when it comes to developing
cost-saving strategies. For example, boomers are more likely than
Generation Xers or millennials to cook at home and incorporate
household efficiencies, millennials are more likely than other age
groups to take public transportation and Generation Xers are more
likely than millennials or baby boomers to use coupons.
Saving Method
Total Millennials Gen
Xers Boomers Prepare meals at home more
regularly 56% 44% 60%
62% Use coupons 37% 32%
42% 36% Cancel subscription-based
services/products (e.g., cable, internet, Netflix)
33% 31% 36% 31%
Incorporate at-home efficiencies (e.g., low-flow showerheads,
energy-efficient lightbulbs) 27% 17%
27% 36% Take public transportation,
bike or carpool 12% 20%
11% 8% Cancel a gym membership 11%
11% 14% 10%
More Than Three-Fourths of Americans Are Saving, with Nearly
Half of Savers Using Multiple Resources
The survey also finds that 77 percent of Americans are currently
saving in some capacity, with nearly half (48 percent) of those who
save doing so through multiple savings resources. For example, 41
percent of those who use a savings account also use a checking
account to save. Similarly, 34 percent of those who use a savings
account also use a retirement account.
Nearly One-Quarter of Americans Aren’t Saving… and Many Don’t
Know Why
While more than three-fourths of Americans currently save,
nearly one-fourth of consumers do not. When asked why they aren’t
saving, 35 percent of respondents say a lack of income is the main
reason. Surprisingly, 17 percent say they don’t have a reason for
why they aren’t saving. An additional 17 percent say they aren’t
saving due to bills that need to be paid, while 10 percent cite too
many debts.
Among those who are not saving, 35 percent do not know which
product or type of account they would use to save if they were to
start.
“We understand that saving can sometimes feel daunting,
which is why we’ve taken steps to provide consumers with helpful
tips that are relevant for people in all financial situations,”
said Roche. “Doing research into the types of accounts you’re
looking for is a great place to start. Discover’s product
comparison tool and financial education blog will help you
determine the best fit, whether you’re interested in an online
savings account, CD or IRA.”
All figures, unless otherwise stated, are from YouGov Plc. Total
sample size was 2,205 adults. Fieldwork was undertaken between
September 6-7, 2017. The survey was carried out online. The figures
have been weighted and are representative of all US adults (aged
18+).
Millennials are individuals between the ages of 18 and 34 at the
time they completed the survey.Generation Xers are individuals
between the ages of 35 and 54 at the time they completed the
survey.Baby boomers are individuals aged 55 or older at the time
they completed the survey.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
Discover Bank, Member FDIC
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DiscoverRob
Weiss224-405-6304robertweiss@discover.com@Discover_News
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