Who’s Winning the Savings Game? | Global News Avenue

Millennials and Gen Z have many similarities in their money habits, such as prioritizing travel and entertainment over saving for retirement. But there are some key differences. For example, Millennials usually than Generation Z Do.

According to New York Life’s 2024 Wealth Watch, Millennials will save $9,299.45 in 2023, while Gen Z will save $6,440.67. How do you compare? What steps can you take to increase your savings?

Millennials: Savings and Spending Habits

Millennials, who range in age from 28 to 43, prioritize saving but face rising costs of living and debt payments. Even so, many people will still be able to save nearly $10,000 in 2023. Additionally, Millennials (64%) invest in the stock market. they also favor ETF (Exchange Traded Funds) and retirement account.

Generation Z: Savings and Spending Habits

Now, between the ages of 14 and 27, most Gen Z have just graduated from high school or college, so personal finance wasn’t a priority until then. In fact, three-quarters of Gen Z say they would rather have a better quality of life than have more money in the bank, according to Intuit’s 2023 Prosperity Index study.

As with Millennials, rising costs of living and debt repayment are barriers to saving. Instead of saving for retirement, many Gen Zers are saving for a new car.

Savings across generations: Goals vary by age

Millennials save the most compared to other generations baby boomers Minimal savings. Of course, this is because most Baby Boomers have retired or are about to retire, while Millennials are actively working and working save for retirement.

Tips and Strategies to Increase Savings

arrive Maximize your savingsthere are several strategies you can try.

• start early: The earlier you start, the more you can save.
• Reduce unnecessary expenses: Spending less on entertainment or other non-essentials can increase your savings.
• use a High Yield Savings Account: These accounts earn more than traditional savings accounts.
• Make a budget: Knowing how much you need to spend can reveal how much you have saved.
• Build an emergency fund: You don’t want to be caught off guard by an unexpected car repair or medical bill. Try saving three to six months of expenses in an emergency fund.
• build credit: Having a good credit score and a healthy credit report will help you purchase a home or vehicle.
• Tackle high-interest debt first: This maximizes your cash for other spending or savings.
• Automate your savings: Setting up automatic deposit means you save money first and then spend it.

bottom line

While both Millennials and Gen Z are saving money, they are challenged by the high cost of living and debt. Still, there are steps you can take to help you save, from automating your savings to using a high-yield savings account. Developing good financial habits now can lead to big savings later.