Millennials: No matter what, keep saving.
Millennials—those born from the early 1980s to the late 1990s—are more educated and technologically advanced than any previous generation. Why, then, do 35% of millennials (Americans aged 21 to 37) still live at home with their parents? And why are more than half still relying on their parents for financial assistance? These are recent statistics compiled by Country Financial, a nationwide provider of insurance products and financial services. They’re disturbing, but they’re understandable.
College tuition, student loan debt, and the overall cost of living (including health insurance) are much higher than what their parents faced. For example, the average monthly rent in 1960 (adjusted for inflation) was $588, compared to $1,600 today. That’s nothing compared to the increase in college tuition, of course, which in one generation has soared exponentially.
Many economists point to the Great Recession of 2007-08 as a reason for millennials’ financial struggles. According to the Federal Reserve Bank of St. Louis, the oldest millennials have an average wealth level that is 34% less than it likely would be had the Great Recession not occurred.
Set clear, long-term financial goals.
The good news is the way to gain financial independence has never changed, and begins the same as it has with every generation: by setting clear fiscal goals that focus on saving.
Do you have substantial student loan and/or credit card debt? Don’t wait to pay it off before you start saving. Deposit at least a little of your monthly income in a savings account, money market account or interest-bearing checking account. And if you go to work for a company that offers a retirement plan, sign up for it the day you become eligible.
Whether you’re saving for retirement, for the down payment on a house or a car, or for any other long-term objective, Oklahoma State Bank offers many ways to save, including our new Interest Plus Checking account, which pays up to 2.17% APY* interest. Contact an OSB representative today to learn more about building wealth and becoming financially independent.
Sources: BusinessInsider.com, Los Angeles Times, Pew Research
*APY = Annual Percentage Yield. Interest Plus qualifications – 2.17% APY* for balances up to $25,000 if 12 POS transactions and 1 ACH debit or credit transactions occur per statement cycle; 0.05% APY* when qualifications are not met. 0.25% APY* will be paid on the portion of any balance that exceeds $25,000.