The millennial generation — those aged 18 to 34 — recognize the value of savings, but their student debt burden limits their ability to save for long-term goals, according to a Bank of America/USA Today survey released yesterday.
In the wake of the financial crisis and recession, 44 percent of millennials are setting aside money for an emergency fund. However, only 29 percent are saving or investing for retirement, 26 percent are saving for a house and 20 percent are saving for a new car. Nearly half of millennials have an outstanding student loan, and with an average monthly payment of $201, 54 percent of those say their student debt limits their ability to save.
Millennials are more likely to have received financial support from their parents were when they were starting out. About 36 percent of millennials’ parents said they had received some or a lot of parental support, while 65 percent of millennials said they had.