When it comes to saving money, the earlier you start, the better. Thanks to the magic of compound interest, you could end up with more saved by the time you retire than someone who earns and/or saves a lot more than you but who started saving later in life.
It appears as if some young adults are getting that message. One study found that nearly half of Millennials have $15,000 or more saved, and 1 in 6 has more than $100,000 in savings. It also found that this age group is also more likely to set savings goals – as well as meet them — than other generations. In addition, most Millennials also report feeling financially secure at a level similar to Baby Boomers and members of Generation X.
Two other key takeaways of a Bank of America report on Millennials and money:
— Nearly three-quarters of Millennials who have a budget stick to it every month or most months. Budgeting is an important skill and can help you gain control of your finances.
— More than two-thirds of Millennials who have a savings goal stick to it every month or most months. Consistently saving money over time is a key way to build wealth.
—Nearly a quarter of older Millennials are already saving for their children’s education. Regularly putting aside money for a child’s college education, from when they are infants through high school can help families — and their children — avoid debt during the college years.
But there are plenty of other Americans — of all ages — who aren’t doing such a great job of managing their money, have yet to start saving much money and are struggling with debt. If that’s you, don’t get discouraged. Take action! There’s a popular Chinese proverb that says: “The best time to plant a tree was 20 years ago. The second best time is now.” That applies to saving money, too! Get started today and whatever your age, you could achieve more financial security than you thought possible.
To end financial stress, you need an education not taught at school, one the banks would rather you not have. That’s where we help. At 101 Financial, we can help you:
- Eliminate debt and save thousands in interest.
- Remove financial stress from your home.
- Overcome past financial mistakes.
- Be empowered by a budget that fits your life.
- Build a future you’re excited about.