The common misconception is that the millennial generation is bad with money. However, studies show they are most likely to be super-savers. Most work hard, ask for raises, contribute over 15 percent of earned income to 401(k) plans, and learn as much as possible about retirement, inheritance and debt management. In Texas and other states, millennials believe there will be no Social Security by the time they retire.
Millennials are defined as the generation born between 1980 and 1995 and are between 23 and 38 years old. In reports from Bank of America, millennials are better than older generations at managing money and are not doomed to a financial crisis as some predicted. About 57 percent have savings goals and are planning for future retirement. They budget and are assertive when it comes to cash flow and making sure it continues to grow.
Despite the stigma attached to millennials, it is predicted that this generation could be the wealthiest yet. The millennial population could be worth a staggering 24 trillion by 2020 with a combined effort of personal savings, shrewd investments and entrepreneurial actions. They are likely to create history by being the recipient of one of the biggest intergenerational wealth transfers ever.
Regardless of the negative stereotypes, the millennial generation is doing a great job with saving and budgeting for the future. With a combination of new businesses, inheritance and high-paying careers, they are destined for success. In Texas, millennials who have questions regarding retirement plans may benefit from consulting with an attorney and financial advisor to make sure that their future remains secure.
Source: fool.com, “Think Millennials Are Bad With Money? Don’t Be So Sure. — The Motley Fool“, Matthew Frankel, Feb. 11, 2018