Sixty percent of Millennials (18- to 36-year-olds) who are limiting how much they spend each month are doing so in order to save more money (ahead of other concerns such as stagnant income, debt and worries about the economy and job security), according to a Bankrate.com report.
That’s more than double the 25% of older generations who cite saving as the main reason for setting a spending cap. The disparity is even larger for those ages 18 to 26, with 74% placing a priority on saving.
Far fewer Gen Xers (ages 37 to 52, 33%), Baby Boomers (ages 53 to 71, 21%) and members of the Silent Generation (age 72 and older, 12%) cite saving more as their number one concern, as stagnant income becomes an increasing factor for older Americans.
However, the need to save more money tops the list of reasons for limiting spending for the second consecutive year (36%) and has risen from 30% last year and 25% in 2015.
Bankrate research also finds Millennials are the age group most inclined to indicate that they are more comfortable with their savings now compared to one year ago (24% vs. 16%). In all, just 19% of Americans are more comfortable with their savings now as opposed to this time last year.
“Everyone should prioritize saving and take advantage of the tax benefits of retirement accounts now—workplace 401(k)s and Roth IRAs—and shop around for the best savings rates to store, and add to, your emergency fund. Your future self will thank you one day,” says Greg McBride, Bankrate.com’s chief financial analyst.