Nearly half (47%) of Millennials have turned to their parents to pay for some of their expenses, such as cell phone plans, utilities, or movie and television streaming services, according to Fidelity Investments’ second biennial Millennial Money Study. In addition, 21% of this demographic group are still living with their parents.
Nonetheless, 85% of Millennials have saved some money, up from 77% in 2014. Nearly six in 10 Millennials, 59%, have set aside emergency savings, averaging $9,100—more than the $8,700 that Generation X and the $7,100 that Baby Boomers have saved. Furthermore, 60% of Millennials are saving for retirement, up from 51% in 2014.
Among those Millennials with emergency savings, 86% have stored that money in a savings account, which currently is likely to earn less than 0.25% in interest. While 62% of Millennials have an investment account, oddly enough, only 9% consider themselves dedicated investors. Forty-four percent say they are spenders, while 46% say they are savers.
Sixty-one percent of Millennials use a mobile application to access their checking and/or savings account. Fifty-two percent use mobile apps to manage their credit cards, and 49% use them to pay bills. However, only 14% are using mobile apps to check their brokerage accounts, and a mere 18% are using them to manage their retirement accounts.
Although many Millennials turn to their parents for financial help, and 65% of Millennials say their parents have been good financial role models, ironically, 34% find it difficult to discuss money with their parents, up from 24% in 2014.
“Many young adults are interested in investing, but sometimes
feel hesitant in taking that initial step,” says Kristen Robinson, senior vice
president at Fidelity Investments. “Everyone needs to start somewhere, and with
a bit more knowledge and experience under their belt, we anticipate Millennials
will feel more comfortable engaging in conversations with family and friends
and will start exploring how they can make their money grow. Finding ways to
turn positive savings habits into positive investing strategies will help
Millennials gain greater confidence—and, ultimately, financial independence.”
GfK Public Affairs conducted the survey of 615 people for Fidelity Investments in July; 305 of them were Millennials, 155 were Gen X’ers, and 155 were Baby Boomers.