Younger people in the United States often get a bad rap for getting themselves into debt, being financially unaware, and not saving money or investing in their future such as looking at pension schemes. However, a recent report has suggested that younger people may be far more savvy when it comes to saving money than many people think. In fact, it has been suggested that younger people in America may be setting the standard when it comes to saving compared to those aged thirty and over.
The data comes from a recent Bankrate study, which shows that when it comes to people ages thirty and over only around half of this age group are putting aside at least 5 percent of their income on a yearly basis. However, when it comes to younger people the rate goes up to one in three, showing that older consumers are not necessarily ahead of the game when it comes to putting money aside.
Learning a lesson from the financial crisis
According to one official who was involved with the survey, one of the reasons behind younger people being savvy when it came to saving money was because the financial crisis in America and around the globe came during their formative years. This had enabled many of them to learn valuable lessons from the financial situation they saw emerging all around them, which they had then carried with them during the years following the crisis.
Not only did the survey show that more younger people were putting aside a decent chunk of their income each year but it showed that close to 30 percent were saving more than 10 percent of their money each year. In fact, the number of people covering all ages who are saving 10 percent or more of their income has increased over the past year according to the data from the report.
An industry official said that it was particularly important for younger people to make sure that they were saving a decent chunk of their income each year due to the unpredictable future that they faced. With concerns over things such as retirement, social security, increased medical costs, employment issues, and longer life spans, younger people would be under more pressure to have money stashed away than many older people. He said that having a financial lifeline when younger could save people a lot of problems in the future.