Despite being strapped with student loan debt, millennials are surpassing older generations when it comes to money management habits like saving and budgeting, a recent Bank of America survey shows.
According to the Better Money Habits Millennial Report published earlier this year, 63 percent of millennials (ages 23 to 37) are saving. Fifty-seven percent say they have a savings goal, as compared to the 42 percent of Gen Xers and 42 percent of baby boomers who also say they have savings goals. And the majority of millennials with savings goals are not all talk—67 percent meet their set goal.
“Young adults deserve more credit—from others and themselves—for the way they are handling their finances,” says Andrew Plepler, global head of Environmental, Social and Governance at Bank of America. “They’re on par with or even better than older generations, which defies common stereotypes.”
But to stay on the right track, there are financial missteps that millennials should learn to avoid that older generations have grappled with, says Richard W. Paul, president of Richard Paul & Associates LLC and author of The Baby Boomers’ Retirement Survival Guide: How to Navigate Through the Turbulent Times Ahead (Createspace, 2013).
“Certainties the older generation had and hung onto have mostly evaporated, which makes it incumbent on young people to educate themselves, avoid those pitfalls, and make better…